The Reserve Bank of Australia’s (RBA’s) aggressive hike did not help the aussie much, with equities fragile. Post-FOMC next week, once the dust settles, economists at Westpac expect to see the AUD/USD a little softer, near 0.7100.
RBA cash rate pricing is aggressive
“Aggressive market pricing for RBA tightening reinforces the aussie’s fundamentals and should limit the scale of pullbacks for months to come. A previously very shaky support pillar has been shored up.”
“FOMC meetings often deliver volatility, but when the dust settles, we should see AUD/USD at the lower end of recent ranges, near 0.7100, with risks lower until the global mood brightens.”