At their last meeting, the RBA caught most economists by surprise, raising interest rates by 25bps to an unusual level of 0.35%. Most analysts expected no move, and those who did, figured the Reserve Bank would align policy at 0.25%. Despite the unexpectedly stronger policy change, the AUD lost ground against the greenback. This can be explained by the Fed tightening rates faster and being expected to continue to do so. But, since then, data has come in to give more reasons for the RBA to start hiking. Typically, a commodity currency like the Aussie would have higher interest rates than the dollar, so it’s in a ... (full story)