The Australian dollar has been ripping higher in Asian trade on Tuesday, and not just against the US dollar. Literally, everything.
The scoreboard below tells the story.
- AUD/USD 0.7633 , 0.0055 , 0.73%
- AUD/JPY 78.99 , 0.62 , 0.79%
- AUD/CNH 5.1066 , 0.0362 , 0.71%
- AUD/EUR 0.6843 , 0.0045 , 0.66%
- AUD/GBP 0.5729 , 0.0035 , 0.61%
- AUD/NZD 1.0432 , 0.0061 , 0.59%
As soon as Asian markets got underway the Aussie was in demand, rising from around .7580 to as high as .7632 in a little under two hours.
In recent trade it’s just discovered a second wind, trading at .7633 against the US dollar.
Though strong Australian economic data released at 11.30am AEST assisted the move — revealing a hefty contribution to Australian Q2 GDP from government expenditure during the quarter — one suspects it’s a preemptive move before the release of the Reserve Bank of Australia’s September rate decision at 2.30pm AEST.
With no one is expecting a move in rates, it appears that traders are betting that the RBA won’t deliver an explicit easing bias in the body of the September monetary policy statement.
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