The RBA has once again taken a break in the rate hike cycle and left its key rate unchanged at 4.10%. However, the RBA seemed quite hawkish in its statement. According to the RBA, a further tightening of monetary policy might become necessary. However, in Australia too much depends on future data publications.

So overall it was a hawkish pause in Australia. That is likely to limit a down move in AUD against USD as the US central bank has also taken a break in the rate hike cycle and a Fed rate hike in July is far from being a fait accompli.