AUD/USD flows: RBA continue to hold

The RBA meeting has kept rates on hold with recognition of slower CPI moderation than expected. The interest rate decision aligns with our forecast as the RBA could not justify neither tightening nor easing when the quarterly CPI is at 3.6% while monthly CPI stays at 3.6% q/q, above the RBA's target range and show minimal progress of moderation in the past months. With no change to their forecast of returning to target range in mid 2025, it seems to point towards the current rate will be held longer.

AUD/USD is trading unchanged.