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Aussie still supported by Yellen, RBA now in focus

There were no data releases from Australia this morning. The market is still reacting to Yellen’s speech which dampened expectations around the speed in which the Fed was going to raise interest rates. The change in expectations has meant that the AUD has become more appealing option as the higher yielding currency. However the strong AUD will now put the focus back onto the Reserve Bank of Australia’s decision next week to see if they will look to reduce interest rates in the hope of bringing the AUD down to a level they would prefer.
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Aussie supported by attractive bond yields

There were no data releases from Australia this morning. On Tuesday, the Aussie surged to its highest level in nearly a week as investors scaled back expectations for how fast and far U.S. interest rates might rise this year after Fed Chair Janet Yellen emphasized the need to proceed “cautiously” on tightening policy. 
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Aussie higher despite no data releases

There were no data releases from Australia this morning with banks being closed in observance of Easter Monday holiday, with markets mostly speculating on future FED and RBA monetary moves. ABN Amro say they believe the Reserve Bank of Australia is likely to lower the Official Cash Rate, a move that is not priced in by financial markets, and therefore the Aussie. This is clearly a downside risk for the Australian dollar exchange rate complex as it suggests demand for AUD in the carry trade will be diminished. Read more...

ANZ forecasts no rate cuts for the rest of the year

ANZ forecasts the RBA is on hold for the rest of this year and through 2017. According to ANZ economy is on firmer footing. Global risks are dissipating, while domestic economy is likely to continue to be a slow grind. ANZ had previously been looking for two further cuts this year. Read more...

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