The Aussie tumbled overnight, feeling the heat of Australia’s disappointing inflation data, which may have encouraged investors to increase bets with regards to an RBA rate cut in the months to come. As for today, the spotlight is likely to turn to the BoC rate decision. No change in policy is expected and thus, attention is likely to fall on the accompanying statement, the updated economic projections and the Governor Poloz’s press conference. Tonight, during the Asian morning Thursday, the central bank torch will be passed to the BoJ.
Aussie Tumbles as Australia’s Inflation Misses Estimates
The dollar traded higher against all but one of the other G10 currencies yesterday and during the Asian session today. It gained the most against AUD, NOK and NZD, while the currency against which it failed to eke out gains was JPY, with USD/JPY found virtually unchanged this morning.
At first glance, the pattern suggests a risk-off trading environment, but looking at the equity-market performance, we can realize that this was not the case. Most major EU indices closed in...
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