The Reserve Bank of Australia (RBA) has decided not to hike rates. AUD reacted negatively to the decision. Economists at Commerzbank analyze the Aussie outlook.

RBA takes another break

The RBA has once again taken a break in the rate hike cycle and left its key rate unchanged at 4.10%. However, the RBA seemed quite hawkish in its statement. According to the RBA, a further tightening of monetary policy might become necessary. However, in Australia too much depends on future data publications.

So overall it was a hawkish pause in Australia. That is likely to limit a down move in AUD against USD as the US central bank has also taken a break in the rate hike cycle and a Fed rate hike in July is far from being a fait accompli.