The RBA gave a nod to the omicron variant but mostly emphasized higher household spending and business investment in its latest decision. The statement also strongly hinted that bond buying will wrap up in February. That’s news that could support the market’s pricing for a hike in July.
The Australian dollar edged up to 0.7065 from 0.7053 before the statement was released. AUD/USD has now erased the US leg of Friday’s rout. That reversal is helping to tentatively underscore 0.7000 as a critical support level.