The Reserve Bank of Australia’s (RBA) surprise decision to slow the pace of tightening by delivering a smaller 25 bps hike weighed on the aussie. Economists at MUFG Bank expect the AUD/USD pair to challenge the 0.6000 level.
RBA policy update reinforces downside risks
“We continue to believe that risks remain tilted to the downside for commodity currencies in the near-term.”
“The RBA’s policy shift has increased the likelihood that AUD/USD will fall towards the 0.6000 level.”