RBA Preview: 25bp Hike to 4.60% Widely Expected Amid Sticky Inflation

The Reserve Bank of Australia (RBA) is expected to raise interest rates by 25 basis points to 4.60%, according to market expectations.

This move, which is widely anticipated, may not have a significant impact on the Australian dollar's value, as investors are more focused on the tone of the RBA's statement than the decision itself.

ING notes that a hawkish hike would likely support the AUD, but flags a potential test below 0.70 against the US dollar due to the greenback's recent strength.

The conflict in the Middle East and its effect on oil prices are also being closely watched, as higher energy costs could continue to drive inflation concerns, keeping November's rate hike alive in market pricing.