The Reserve Bank of Australia (RBA) hiked rates by 50 bps but did not give the AUD a boost given the bank showed doubts when it comes to the exact hiking pace, economists at Commerzbank report.

RBA does not deliver enough

“On the one hand, the rate hike was expected by the majority, and on the other hand, the RBA is keeping a low profile regarding further aggressive rate hikes. Rather, it retains the flexibility to decide from meeting to meeting depending on incoming data.” 

“In view of the globally increased inflation risks, this does not seem decisive enough for the market, which is why AUD/USD is heading south this morning.”