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Little Lowe opposition to dollar strength
The Reserve Bank governor has offered little opposition to a stronger Australian dollar in Senate testimony today, OANDA senior trader Stephen Innes says.
“RBA’s Governor Lowe offered little opposition to the stronger AUD in this morning’s speech and dealers still view the bar as extremely high for an interest-rate cut from the RBA,” Mr Innes says.
“I suspect the RBA will remain parked in neutral while the US Fiscal and Tax policies unfold and as the Fed’s move further along the path of interest rate normalisation.”
Still, he feels it will take some time for the currency to break any higher, with iron ore in focus after a 3.2pc fall overnight.
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