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Aussie little changed in a quite Monday trade

There were no data releases from Australia today. “As per usual, AUD/USD will remain influenced by USD movements as well as commodity prices and equity markets,” said Elias Haddad, senior FX strategist at the CBA in his Monday morning update. “Given credit spreads are narrowing again, a factor usually associated with rising equity markets, we believe the immediate downside in AUD/USD will be somewhat limited this week.” Read more...

Will RBA cut rates further?

Bank of Australia governor Ian Macfarlane was in the Australian media overnight speaking about the direction global growth is headed and what effect that is having on monetary policy decisions at home. It was his comments around on the Aussie Dollar and why current governor Glenn Stevens and the RBA felt they ‘had to’ cut rates earlier this month that pricked my trading interest. Read more...

RBA worried about low inflation

Australia's recent dip into deflationary territory is unlikely to have been a one off and could prompt further interest rate cuts this year, the Reserve Bank has signalled. According to the minutes from its May meeting, where the cash rate was cut to 1.75% on budget day, the RBA board was briefed about "ongoing inflation trends" and that the outlook could be lower for longer. Referring to the March CPI result where inflation went backwards by 0.2 per cent, the board was told that the data "were less subject to measurement error than many other key data series".
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Aussie lower in an overnight trade

There were no data releases from Australia, with Aussie being pushed below 0.73 handle.Throw into the mix the RBA on rate cutting mode, having to deal with low inflation prospects and a housing bubble about to burst, and the pressure on the Aussie continues to be justified as market participants price in all these AUD bearish elements into the price.
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