The Australian dollar fell 30 pips to 0.7040 immediately after the RBA decision. Most had expected a more-hawkish pivot with the market pricing in a hike in May/June but Lowe brushed off surprisingly high inflation data and highlighted different dynamics in Australia, particularly on wages.
That's a dovish surprise but AUD quickly steadied after the initial decline and has clawed back 15 pips to 0.705. It's a sign that monetary policy is less top-of-mind for Australia dollar traders as the winds of the risk trade blow hard.
That sentiment is a saving grace for AUD/USD right now because late last week the pair touched the lowest in 20 months, dipping below the crucial area of support at 0.7000.
