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Aussie stable above 0.76 handle

There were no major data releases from Australia this morning. The Australian dollar continues to soar amid a relentless greenback sell-off following the US Federal Reserve’s policy announcement. The Australian dollar is expected to grind higher to 78 U.S. cents in the near term before losing momentum after reaching its highest level since July 2015 on broad-based U.S. dollar weakness overnight. Read more...

RBA says it has room for further rate cut

The Reserve Bank has put a positive spin on the local jobs outlook, but says another rate cut could be on the cards because of weak inflation. Economists are divided about whether the central bank will lower its cash rate from a record low 2.0 per cent, with some tipping two cuts in 2016 while others expect the RBA to sit tight for the rest of the year.
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RBA left interest rates unchanged

The Reserve Bank of Australia kept the cash rate unchanged again today at two per cent — where it has remained since May — leaving interest rates at historically low levels. In the following statement it was said that inflation is quite low. "With growth in labour costs continuing to be quite subdued as well, and inflation restrained elsewhere in the world, inflation is likely to remain low over the next year or two. The exchange rate has been adjusting to the evolving economic outlook." 
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RBA Edwards would be more comfortable with Aussie at 0.65 handle

There were no data releases from Australia this morning, however, Aussie was pushed lower after Reserve Bank of Australia Edwards in a WSJ/DJ interview said that he would be more comfortable with AUD/USD at 0.65 handle. He explained that Australian dollar is not reflecting weakness in commodity prices. He also noted that he expects Fed to further delay rate hikes. Read more...

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