The euro traded up and through 1.12 last night. That’s the highest level since late January.
What’s fueling the rally is changed expectations about the path of the US economic growth and the timing of the Fed’s first tightening this year.
You might expect that the Aussie dollar would be comfortably above 80 cents on this basis. But last night an article in the SMH, which screams RBA backgrounding, suggested that the RBA will cut rates at its next board meeting on Tuesday.
That knocked the Aussie down more than a cent and a half from where it was trading before the release of the article to a low of 0.7864 last night.
It has recovered a little to 0.7907 this morning – down 1.25% on the day.