Breaking: RBA hikes OCR by 25 bps to 3.60% in March, as expected

FXStreet Team FXStreet

The Reserve Bank of Australia (RBA) board members delivered the tenth consecutive interest rate hike in March, lifting the Official Cash Rate (OCR) by another 25 basis points (bps) from 3.35% to 3.60%, as widely expected.

Economists surveyed by Reuters revealed that the RBA would announce its fifth straight quarter-point interest rate hike on Tuesday, followed by one more lift next quarter, before pausing until next year.

AUD/USD reaction

In a knee-jerk reaction to the RBA decision, the AUD/USD pair dropped nearly 30 pips toward 0.6700. At the time of writing, the Aussie is down 0.06% on the day, trading at 0.6720.

AUD/USD: 15-minutes chart

About RBA rate decision

RBA Interest Rate Decision is announced by the Reserve Bank of Australia. If the RBA is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the AUD. Likewise, if the RBA has a dovish view on the Australian economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.

Author

FXStreet Team

FXStreet

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD falls toward 1.1700 on broad USD recovery

EUR/USD turns south and declines toward 1.1700 on Wednesday. The US Dollar gathers recovery momentum and forces the pair to stay on the back foor, as traders look to USD short-covering ahead of US inflation report on Thursday. However, the downside could be capped by hawkish ECB expectations.

GBP/USD trades deep in red below 1.3350 after soft UK inflation data

GBP/USD stays under strong selling pressure midweek and trades below 1.3350. The UK annual headline and core CPI rose by 3.2% each, missing estimates of 3.5% and 3.4%, respectively, reaffirming dovish BoE expectations and smashing the Pound Sterling across the board ahead of Thurday's BoE policy announcements.

Gold clings to moderate daily gains above $4,300

Following Tuesday's volatile action, Gold regains its traction on Wednesday and trades in positive territory above $4,300. While the buildup in the USD recovery momentum caps XAU/USD's upside, the cautious market stance helps the pair hold its ground.