The Reserve Bank of Australia (RBA) increased its benchmark interest rate by 25 basis points to 4.6%, sparking gains in the Australian Dollar against several major currencies, according to FX Street.
Following the rate hike, the AUD/NZD pair climbed to a three-day high near 1.2400 during the Asian session on Tuesday. Meanwhile, AUD/USD traded around 0.7020 after recovering earlier daily losses. The Australian Dollar also strengthened by 0.25% against the Japanese Yen, reaching near 110.70, as reported by FX Street.
For Japanese investors, the RBA’s move highlights ongoing global monetary tightening trends that could influence carry trade dynamics and risk sentiment in regional FX markets.