RBA Rate Hike Fails to Lift Aussie Dollar Amid Dovish Signals

The Reserve Bank of Australia (RBA) raised interest rates to 4.60% as expected, but the Australian Dollar (AUD) fell below $0.700 against the US Dollar (USD).

According to ING's Francesco Pesole, the RBA's decision was overshadowed by dovish signals from Governor Michele Bullock during a press conference.

Bullock revealed that policymakers considered holding rates due to risks to the housing market and a potentially slower global economy, citing the Middle East conflict as a concern.

Despite this, ING still targets AUD/USD at $0.720 in December, contingent on a softer USD and easier global liquidity conditions.