ING research reviews the November RBA decision and discusses AUD outlook. 

"The Aussie dollar came under pressure this morning after the RBA hiked rates as expected to 4.85%, but delivered some dovish signals. First, the 6-3 split suggests lower conviction around today’s decision than in markets, which had almost fully priced in a hike (21bp). Second, the statement dropped its reference to potential further hikes for the first time since June. Third, the economic outlook was revised sharply to the downside, with a focus on falling house prices weighing on consumers and upside risks to unemployment," ING notes.

"Despite today’s correction, we remain positive on AUD, which offers the best short-term carry in G10, including on a volatility- adjusted basis. Markets price only a one-in-three chance of another hike at the coming meetings and already embed 13bp of easing by the end of 2027, leaving AUD with limited risk of further dovish repricing for now. The current environment remains a bit challenging for AUD amid AI-related jitters, but we remain confident that our 0.710 AUD/USD target can be reached by year-end," ING adds.