Aussie Rate Decision Larger Impact on Markets
Topics: aud/usd, aussie, currency correlation, forex news, forex opinions, ForexCrunch, gdp, glenn stevens, nfp, non-farm payrolls, rba, risk aversion
The decision to leave Australian’s interest rates unchanged left the Aussie vulnerable and hurt. A look at the decision, the impact for the Aussie and the larger impact for other currencies as the Non-Farm Payrolls are coming. The decision Although it wasn’t totally unexpected, the decision to leave the Australian Cash Rate at 3.75% and raising the rates to 4% was a blow to the Aussie. The instant reaction in AUD/USD was a fall of almost 150 pips -from 0.8927 to 0.8781. Doubts about the rate hike existed all along the way. Q3 GDP was weaker than expected, and China’s tightening measures were felt instantly in Australia. On the other hand, most economic indicators are good, especially the …
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I was on the Business News Network this morning talking about my reaction to the Australian rate hike, the IMF’s report on Chinese Yuan undervaluation and my outlook for the Canadian rate decision Click on image to access the video
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