The Reserve Bank of Australia raised the cash rate target by 25 basis points to 3.85% due to renewed inflation driven by increased capacity pressures from strong demand, private spending, and investment. Labor market conditions are tight, with lower than expected unemployment rates and continued growth in wages. Global uncertainty remains high.

Forex and currency futures plays for the day include USDJPY, GBPUSD, EURUSD, NZDUSD, AUDUSD, USDCHF, USDCAD. Market expectations for the cash rate have led to increases in the exchange rate, money market interest rates, and government bond yields. Economic growth and trade among key trading partners have been unexpectedly robust.

Read more at Barchart: Australian Central Bank decisions and the USD