AUD/USD: The recent jump could extend into the 0.6550/0.6570 area – ING

Economists at ING analyze Aussie’s outlook ahead of the Reserve Bank of Australia’s Interest Rate Decision.

A hike by the RBA

We expect a 25 bps increase to 4.35%. For now, our view is that this will be the last hike of the cycle.

Consensus is almost fully aligned with our view for a hike, but markets are pricing in a 50% implied probability. We therefore see upside risks for AUD. 

The recent jump in AUD/USD (driven by the USD correction) could extend into the 0.6550/0.6570 area, barring a USD rebound in today’s session.