RBA Stuns the Markets Again with a Hold at 4.10%

Published: Jul 4, 2023, 04:44 UTC•1min read

The RBA stunned the markets this morning by unexpectedly leaving the cash rate at 4.10%. The Aussie Dollar tumbled in response to the pause.

Highlights

It was a quiet morning on the Asian economic calendar, with no economic indicators from Australia, China, or Japan to draw interest.
While there were no economic indicators to consider, the RBA was in action this morning.
The RBA surprised the markets for a second consecutive month, holding interest rates unchanged at 4.10%.

It is a quiet morning on the Asian economic calendar. There were no economic indicators to draw interest following disappointing manufacturing PMI numbers from Monday.

While there were no economic indicators to influence, the RBA delivered its July monetary policy decision. The RBA surprised the markets for a second consecutive month.

After a surprise 25-basis point interest rate hike in June, the RBA held interest rates unchanged at 4.10% this morning. Economists forecast a 25-basis point interest rate hike to 4.35%.

More to Follow

AUD/USD Reaction to the RBA Interest Rate Decision and Rate Statement

Before the RBA interest rate decision and rate statement, the AUD/USD fell to a pre-RBA low of $0.66682 before rising to a high of $0.66874.

However, in response to the RBA decision and Rate Statement, the Aussie tumbled from $0.66808 to a session low of $0.66438.

This morning, the AUD/USD was down 0.29% to $0.66529.

040723 AUDUSD 30-Minute Chart

Next Up

It is a quiet day ahead on the European economic calendar. However, German trade data will draw interest later this morning. An unexpected narrowing of the trade surplus would fuel recessionary fears following the disappointing manufacturing PMI numbers.

However, there are no US economic indicators to consider, with the US markets closed for the Fourth of July holiday.

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