AUD/USD added to recent gains and revisited 0.6680. Further improvement in the risk complex propped up AUD. Investors continued to assess the RBA’s hawkish hold. AUD/USD extended its recovery for the second day in a row, testing the upper-0.6600s, or multi-session tops, on the back of improved sentiment in the risk-related markets, extra weakness in the US Dollar , and further adjustments to the recent RBA meeting.
On the latter, the RBA emphasized that inflation remains persistently above target and introduced a new commitment to take necessary actions to bring inflation back within the target range. Looking forward, the money markets foresee around 20 bps of easing by May 2025, with the possibility of rate hikes in August, September, and November not completely ruled out.