At its April monetary policy meeting, the Reserve Bank of Australia (RBA) board members decided to leave the Official Cash Rate (OCR) unchanged at 3.60% after ten consecutive interest rate hikes so far.

Markets had placed around an 85% chance the central bank will stand pat on rates this Tuesday.

AUD/USD reaction

In a knee-jerk reaction to the RBA decision, the AUD/USD pair dropped nearly 15 pips to test 0.6770 before recovering to 0.6785, where it was trading before the Policy announcement. The pair is trading modestly flat on the day.

AUD/USD: 15-minutes chart

About RBA rate decision

RBA Interest Rate Decision is announced by the Reserve Bank of Australia. If the RBA is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the AUD. Likewise, if the RBA has a dovish view on the Australian economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.