AUD/USD flows: As expected with changes to forward guidance

As per our forecast, RBA kept rates at 4.35% citing easing but still high inflation figure. It is expected as CPI has been moderating along with RBA's forecast but the latest monthly CPI remains above target range at 3.4% y/y. The change in forward guidance to "The path of interest rates that will best ensure that inflation returns to target in a reasonable timeframe remains uncertain and the Board is not ruling anything in or out." is important because it is opening the path to easing once CPI returns to range. 

AUD/USD dropped 0.59% to 0.6526.