Aussie is higher today, gaining against the US dollar ahead of tomorrow’s statement from the Reserve Bank of Australia. There is interest in what RBA officials will say, since there are expectations that an interest rate cut could be on the way.
The Australian dollar has been somewhat strong in recent weeks, but RBA officials seem to be worried about the strength of the Down Under currency. On Friday, RBA Assistant Governor Guy Debelle said that the bank had been watching the rise of the Aussie. On top of that, other officials have said that it looks as thought the Australian dollar could be having a constricting effect on the economy.
Forex traders will be watching Tuesday’s statement from RBA Governor Glenn Stevens for information on future rate cuts, meant to weaken the Aussie. There isn’t much speculation about direct intervention to prevent the Aussie from gaining more strength, but there are expectations that the RBA could decide to do something conventional to try and slow the gains.
At 13:02 GMT, AUD/USD is heading a little bit higher, up to 1.0438 from the open at 1.0434. EUR/AUD is lower, dropping to 1.1785 from the open at 1.1817. GBP/AUD is actually a little higher right now, heading up to 1.5030 from the open at 1.5026.
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