FXStreet (Delhi) – Research Team at BBH, note that the Australian dollar had approached $0.7400 at the start of the week and it dipped below $0.7250 yesterday and to $0.7200 today before recovering.
Key Quotes
“China’s weak import data yesterday (despite an increase in iron ore), weighed on the Aussie. News that one of Australia’s largest banks increased the variable rate mortgage rate by 20 bp fanned speculation that the RBA would likely counter such tightening by cutting rates again.”
“The derivatives market is now pricing in about a 50% chance of a cut next month. Amid the generally weaker US dollar, the Aussie recovered to almost $0.7280, but European dealers seem happy to sell it on the bounce. A break of $0.7200 targets $0.7160, and possibly $0.7100.”
(Market News Provided by FXstreet)