In the end, the decision in favour of a further rate step was taken, but the debate illustrated to the market that at the next meeting in July, the decision to leave rates on hold might be taken.

However, until the next meeting in July, inflation data will be published. The risk of an inflation surprise does of course exist and as a result, a rate hike in July is not off the agenda yet. Against this background, downside pressure on AUD is therefore likely to be limited for now.