Aussie declined 1.6% overnight… Strength in the USD overnight in the lead up to the winding up of the 2 day FOMC meeting led the Aussie to near its lowest level in 3 years, as well as comments by RBA governor Stevens talked of the potential for there to be further easing “if need to support demand”.
The next RBA meeting is on Aug 6th and it will be interesting to see if the current record-low rate of 2.75% is left unchanged.
The Aussie, according to Bloomberg, has depreciated 10% this year, which is the worst performance in the basket of 10 developed market currencies. The best being the Euro gaining 5.4% whilst the Yen has declined 8.5%.
