Australian Dollar remains steady following RBA rate-cut decision

• The Australian Dollar moves little as traders could already have priced in RBA’s rate cut decision.
• The Reserve Bank of Australia has reduced its Official Cash Rate by 25 basis points to 4.10%.
• Fed Governor Michelle Bowman warned that upside inflation risks persist, stressing the need for more clarity before considering rate cuts.

The Australian Dollar (AUD) recovers its daily losses following the Reserve Bank of Australia’s (RBA) policy decision on Tuesday. The central bank decided to lower its Official Cash Rate (OCR) by 25 basis points (bps) to 4.10% on Tuesday, as widely expected, marking the first rate cut in four years.

Reserve Bank of Australia Governor Michele Bullock addressed the media after the policy meeting, stating that it’s clear high interest rates have had an impact. However, Bullock emphasized that it’s too early to declare victory over inflation. She also noted the unexpectedly strong jobs market and clarified that the market’s expectation of further rate cuts is not guaranteed.