The Reserve Bank of Australia not only raised interest rates as scheduled, but also issued a hawkish statement, which is expected to support the Australian dollar. The Reserve Bank of Australia said “some upward risks of inflation are showing” and promised to further raise cash interest rates “if necessary.” The Reserve Bank of Australia did not mention that interest rates are close to the upper limit of the estimated neutral interest rate range, so it has no intention of releasing a signal to suspend interest rate hikes. The initial reaction of the market was lackluster, and the Australian dollar is currently flat at 0.7016 against the US dollar. However, given that the Australian dollar has the highest spread advantage among G10 currencies, the currency is likely to be supported in this position.

The Reserve Bank of Australia not only raised interest rates as scheduled, but also issued a hawkish statement, which is expected to support the Australian dollar. The Reserve Bank of Australia said “some upward risks of inflation are showing” and promised to further raise cash interest rates “if necessary.” The Reserve Bank of Australia did not mention that interest rates are close to the upper limit of the estimated neutral interest rate range, so it has no intention of releasing a signal to suspend interest rate hikes. The initial reaction of the market was lackluster, and the Australian dollar is currently flat at 0.7016 against the US dollar. However, given that the Australian dollar has the highest spread advantage among G10 currencies, the currency is likely to be supported in this position.