The Australian dollar remains range bound today as commodity prices remain weak, and with no significant news to hit the market, the attention will focus to next week’s monetary policy statement from the Reserve bank of Australia.
In his last speech governor Glen Stevens barely mentioned the Australian dollar, changing his tone from previous meetings which led many to believe that the central Bank is becoming comfortable with the Aussie dollars current level of around US73c.
OANDA Australia and Asia Pacific senior foreign exchange trader Stephen Innes noted that,
"While the central bank reiterated a drop in the Aussie dollar was likely, there was none of the more aggressive jawboning mantra that the RBA has expressed in the past,"
The Australian dollar has broken through the US74c mark a few times this week which may not sit well with the RBA as we head into next week’s monetary report.
Any further strength in the currency may once again see the central bank talk down the currency to keep it lower, and within their comfort zone.
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