- Tuesday saw the Reserve Bank of Australia (RBA) surprisingly drop its benchmark interest rate as it believes the Australian currency is currently overvalued. Following the conclusion of their monthly policy meeting, the RBA lowered the benchmark interest rate to a new record low of 2.25%, from 2.50%. The knock-on effect of this move saw the Australian dollar drop further, touching on six-year lows against its US counterpart.
- Positive data releases from Canada on Tuesday saw the Canadian currency rise against its US counterpart. Statistics Canada stated that raw material price inflation fell 7.6% in December – coming out better than the 8.8% drop expected.
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