AUD/USD flows: RBA holds as expected

The RBA has kept rate unchanged at 3.6% in the December meeting and does not seem to be signaling a cut in the February 2026 meeting either as they suggest risk to inflation is tilted to the upside. While this indicates we will not be seeing the last cut as per forecast in the coming few months, it is not the hawkish tilt certain market participants are anticipating.

Such see the AUD/USD dipped on release before gradually recouping losses to trade 0.02% higher at 0.6625.