AUDUSD Slips Below 0.66 Levels Following RBA Rate Decision

Published on Dec 05, 2023 11:28

The Australian dollar slipped below 0.66 levels on Tuesday following Reserve Bank of Australia�s decision to hold interest rates steady. At its meeting today, the RBA Board decided to leave the cash rate target unchanged at 4.35 per cent and the interest rate paid on Exchange Settlement balances unchanged at 4.25 per cent. Last month, the Board increased interest rates by 25 basis points, following a period of four months where it had held interest rates steady. Whether further tightening of monetary policy is required to ensure that inflation returns to target in a reasonable timeframe will depend upon the data and the evolving assessment of risks, RBA stated. The Board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that outcome, the central Bank added. Meanwhile, recovery in safe haven dollar overseas amid renewed tensions in Middle East also added pressure on the pair. AUDUSD is currently seen quoting at 0.6586, down over half a percent on the day.