RBA's Hawkish Hold Sends AUD/USD Through 0.67

The Reserve Bank of Australia voted unanimously at its June meeting to hold the cash rate at 4.35%, with the statement emphasizing that "the board considers it appropriate to maintain the policy rate until inflation sustainably returns to the 2–3% target range" — a notably hawkish tone. Australia's Q1 CPI came in at 3.8% with core inflation at 3.6%, both above RBA forecasts. AUD/USD jumped after the decision, breaking through 0.6700 and touching an intraday high of 0.6735, a three-month high. Rate futures show markets have now pushed back the RBA's first expected rate cut to December 2025, with under 35% probability of any cut this year.