The Australian Dollar is the biggest mover following the RBA policy update. Economists at MUFG Bank analyze AUD outlook.

RBA leaves rates on hold and dampens expectations for further hikes

Weakness in the Australian Dollar reflects disappointment that the RBA decided to leave their policy rate unchanged at 4.10% which has dampened expectations for further hikes in the current tightening cycle.

A less hawkish outlook for RBA policy will put a modest dampener on the Australian Dollar's performance.

See – AUD/USD: A revisit of 0.6560/0.6520 is not ruled out – SocGen