Preliminary results of an investigation into unusual Australian dollar trades just before the RBA announced a cut in interest rates in February haven’t found any irregularities.
It was the third month in a row there was a jump in the dollar in the seconds before RBA decisions were made public.
ASIC, the corporate watchdog, says it has sent notices to many financial institutions and platform providers to produce trading information.
“Preliminary findings reveal moves in the Australian Dollar ahead of the announcement to be as a result of normal market operations in an environment of lower liquidity immediately ahead of the RBA announcement,” ASIC said.
“The reduction in liquidity providers is a usual occurrence prior to announcement in all markets. Much of the trading reviewed to date was linked to position unwinds by automated trading accounts linked to risk management logic and not misconduct.”