RBA Rate Hike Lands but Three Board Members Voted to Hold

The RBA rate hike left the Australian dollar lower across the majors, as a split vote and softer statement pointed to a meeting-by-meeting approach. Matt Simpson, StoneX Media Market Analyst, explains why markets read the decision as less hawkish than the hike itself and how the shifting rate outlook is playing out in the Aussie and AUD/CAD. The Reserve Bank of Australia removed its reference to raising the cash rate from the final paragraph of its statement, and market pricing for further hikes eased after the decision. Three board members voted to keep the cash rate unchanged, a break from the unanimous vote at the previous hike. Rate expectations for the RBA and the Bank of Canada are converging after a hawkish Bank of Canada meeting, narrowing the Australian dollar's rate advantage in AUD/CAD. Australian bond yields fell quickly, with the five-year yield slipping below the cash rate and the Australia versus U.S. two-year yield differential turning lower. 00:00 - RBA Hikes to an 18-Year High 00:43 - Three RBA Members Vote to Hold 01:22 - Australian Bond Yields Slide 01:49 - Aussie Dollar Sold Broadly 02:25 - RBA Edge Over Canada Fades 03:04 - AUD/CAD Uptrend Rolls Over Discover Actionable Insights with the latest Market Outlook Reports: https://intel.stonex.com/offer?language=en&campaignId=A908C315-DC62-4F35-AC16-870BB71E84D1&utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_matt_simpson&utm_content=share Like and subscribe for more financial market insights. #RBA #StoneX #MattSimpson #AUDCAD --------- Like this video? Subscribe and turn on notifications so you don't miss any videos from StoneX: https://www.youtube.com/@stonex_official Visit https://www.stonex.com/en/insights/thought-leadership/?utm_source=youtube&utm_medium=social for insights, perspectives and thought leadership from StoneX's global network of experts. Visit our website: https://www.stonex.com?utm_source=youtube&utm_medium=social