Aside from our most traded currency pairs on Tuesday it was a fairly quiet day. One pairing that stood out was the Australian dollar, which was weaker against sterling due to comments from the Reserve Bank of Australia (RBA) in their March 1st rate statement that signalled a potential increasing in easing measures. The RBA expressed that “lower inflation conditions ‘would’ provide scope for easing policy”. The market read this as a signal and temporarily curtailed the strength of the Australian currency.
Wednesday sees more data out of Australia with growth and new home sales figures due. Growth is expected to fall from 0.9% to 0.5%, which could mean more weakness for the Australian dollar.
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