Aussie Rally May Fade as RBA Set to Temper Hikes, Analysts Say

The Australian dollar’s rally may fade with the Reserve Bank of Australia set to signal a slower pace of interest rate hikes after a widely expected increase this week, according to top forecasters.

Trading at a modest premium to a short-term fair value of 69.4 US cents, the Aussie will need tighter RBA policy to hold above current levels, according to Scotiabank. Banco Santander SA sees it trading below 72 cents after the central bank likely ends its hiking cycle next quarter and the greenback rebounds. The Aussie closed at 72.02 cents on Friday.