AUD/USD flows: RBA remain on hold

RBA has left cash rate unchanged at 4.35% align with our forecast on Australian inflation dynamics. Despite the slower than expected moderation in CPI, the room for further tightening is small if considering the health Australian economy, even when the RBA leaves the door open to policy changes. There is no big changes in the statement with forward guidance "The path of interest rates that will best ensure that inflation returns to target in a reasonable time frame remains uncertain and the Board is not ruling anything in or out. The Board will rely upon the data and the evolving assessment of risks." is a new set of wordings but not signalling anything new. In the press conference, Bullock suggest further tightening is not ruled out but not of central forecast.

AUD/USD slipped by 0.55% to 0.6589.