The Reserve Bank of Australia (RBA) got the hiking party going with a 25bp rate move. AUD/USD soared to a high of 0.7147 but econmists at Commerzbank expect the aussie to struggle to enjoy further gains.

RBA statement sounded quite hawkish

“The RBA has hiked its key rate slightly more than the market expected from 0.10% to 0.35%. The RBA did not provide any more concrete information about the extent of the next rate steps. Everything all told the statement sounded quite hawkish though, allowing AUD to benefit.”

“The market is expecting a key rate hike at each of the coming meetings, so a lot seems to have been priced in already. That means there is likely to be limited scope for further AUD gains in the current rather difficult financial market environment unless further hawkish RBA comments confirm the market view.”