The minutes from the Reserve Bank of Australia's (RBA) February Board meeting were relatively hawkish. Stronger than expected Australian wages could lift the AUD/USD pair towards the 0.70 level, in the view of economists at Commerzbank.

Minutes confirm RBA's hawkish shift

“The minutes of the RBA’s February meeting has confirmed the RBA's renewed hawkish bias. The minutes show that in view of higher-than-expected inflation and wage data, a 50 bps hike was also considered at the last interest rate decision.”

“The focus now turns to the wage index data for Q4 2022 due for release on Wednesday, which, if stronger than expected, underlines the upside risks to the RBA outlook and is likely to push AUD/USD more towards the upside of its current 0.68-0.70 trading range.”