Canada Just Smashed The Aussie Dollar

Photo: Getty / File

The Australian dollar got killed against the greenback after the Canadian central bank announced an interest rate cut.

Here’s the chart:

The trigger was an interest rate cut from the Canadian central bank, from its key interest rate of 1% to 0.75%.

This has led to a rush to buyers for the US dollar and a big sell on the Aussie.

The Australian central bank is enthusiastic about a fall in the currency’s value against the USD, with RBA governor Glenn Stevens last year saying US75c would be a useful level.

The huge move underlines two important themes in global markets: central banks remain powerful despite record-low interest rates everywhere, and rate cuts elsewhere can still favour the weakening of the Aussie dollar.

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