Australian Dollar Attempts Recovery Following RBA Rate Hike

• Reserve Bank of Australia (RBA) raises interest rates to a 15-year high. • RBA: Upside risks are already materializing. • Expectations for an RBA rate hike in November remain stable. • Markets await comments from Central Bank Governor Michele Bullock. The Australian dollar rose slightly in the Asian market on Tuesday against a basket of global currencies, as part of recovery attempts from a seven-week low against its US counterpart, amid relative buying activity from low levels following the RBA's decision to raise interest rates to their highest level since 2011. The RBA confirmed that further tightening of financial conditions is warranted, keeping the door open for additional rate hikes if necessary, with future decisions dependent on data and developments in outlooks and risks. Regarding the performance of the Australian dollar, we at FX News Today expect the currency to continue moving in positive territory against its US counterpart due to the existing probabilities of a fifth Australian interest rate hike this year. At the conclusion of the September 29 meeting, the RBA's Monetary Policy Committee decided on Tuesday morning to raise interest rates by 25 basis points to a range of 4.60%, the highest level since October 2011, in line with market expectations. US stocks fell on Monday as oil prices and Treasury yields rose, while investors assessed uncertainty regarding the prospects of a peace agreement to end the war with Iran and its impact on the Federal Reserve's interest rate path.