The Australian dollar fell heavily on Tuesday after the country’s central bank surprised markets by keeping interest rates on hold

The Reserve Bank of Australia stuns financial markets by keeping its benchmark interest rate steady at 3.75 per cent, defying forecasts of a fourth consecutive 25 basis point increase

The RBA stunned the market by holding their cash rate steady at 3.75% and not hiking another 25bp, as was widely expected (roughly 80%). The AUD immediately collapsed, as traders anticipated eroding yield spread. The AUDUSD shed nearly one and a half big figures, trading from 0.8927 to 0.8780. However, the RBA’s accompanying statement clearly indicates that rates might go higher in the future….