MUFG Research discusses AUD outlook in light of the RBA's 50bps hike this week.
"The RBA’s 50bp rate hike has taken the official policy rate to 1.35%, the highest since May 2019 and the first ever back-to-back 50bp hike. The statement from the RBA was standard enough with the common guidance that the “size and timing of future interest rate increases will be guided by the incoming data and the Board’s assessment of the inflation outlook and the labour market” MUFG notes.
"We maintain that risks for AUD are to the downside. The global growth outlook is deteriorating and the fact that AUD/USD is now lower on the day after a 50bp rate hike underlines the potential over the near-term for renewed declines on global growth concerns," MUFG adds.