From 0.7540 pre announcement, the Aussie dropped as far as 0.7465, but quickly recovered a large part of its losses.
Leading into RBA’s meeting, markets had assigned a 70% chance of a cut.
Explaining the decision, the post-meeting statement said “The Board judged that prospects for sustainable growth in the economy, with inflation returning to target over time, would be improved by easing monetary policy at this meeting”. No further guidance was provided.
More detail on the Bank’s assessment of the economic outlook will be provided in Friday’s Statement on Monetary Policy