Ella 
RBA attempts soft landing
The RBA again opted to pause, keeping its cash rate target at 4.1%. The RBA is now refocusing its efforts to achieve a “soft landing” given its more pessimistic assessment of the economic outlook. However, due to the reappearance of the upside risk of inflation, the central bank still retained the possibility of raising interest rates and did not stop there.
After sitting in the middle of the 0.66-0.69 range, today’s dovish surprise could send the Aussie lower, possibly retesting the low 0.65 support in late May.
Lower terminal repricing and the outlook for China could weigh on the Aussie in the near term.
Chinese data and economic growth expectations are likely to be the key drivers of the Australian dollar after the RBA rate hike, while the lack of specific stimulus details and disappointing Chinese data added to the bearish momentum for the Australian dollar.
Another risk event for the Australian dollar for the rest of the week is the July non-farm payrolls. If the non-farm payrolls data surprises, AUD/USD may accelerate its decline towards the yearly low of 0.65.
