A$ Dips Post RBA

AUD/USD is off intra-day highs, last around 0.6410/15, as the RBA delivered a 25bps hike. Some support was evident sub-0.6410. We were around 0.6440 just prior to the RBA announcement. The 25bps hike was widely expected by the majority of economist and market pricing.

• The RBA statement didn't indicate a step up in pace at next month's meeting, but still expects to adjust policy further. A continuation of 25bps moves, compared with other central moves, which are still of a larger magnitude at this stage, may have been enough to weigh on A$ sentiment post today's outcome.
• AUD/NZD printed fresh lows at 1.0971, but we are now back just under 1.0990.
• The 2yr Australian government bond yield is now back to flat for the session, last around 3.22%, roughly 9-10bps down from pre-RBA levels.
• Note RBA Governor speaks later this evening, 7:20pm AEST time (see this link).