Post #15765

RBA Warns of Sticky Inflation AUD ripped higher, up over 1%, as buyers stepped in on the rate surprise. Yield-sensitive flows are driving the move, putting the Aussie back in demand against lower-yielding peers. The RBA delivered a 25bp hike to 3.85% — its first increase in two years — reversing part of 2025’s easing cycle and signaling inflation remains sticky. Policymakers also lifted their inflation forecasts and effectively acknowledged the path back to target will be slow. Markets now price roughly an 80% chance of another hike in May, with additional tightening possible later this year. Yields across the Australian curve jumped, reinforcing the Aussie’s appeal as a higher-yielding currency in the G10 space. The next level of resistance lies at 0.71500, within the broader 0.69500 zone. - Alan