The Aussie Dollar has surged higher today after the release of the - TopicsExpress



          

The Aussie Dollar has surged higher today after the release of the 4th quarter inflation report that came in at 2.7% which is was above market estimates. If those sorts of inflation numbers persisted the RBA would have to consider the thought of raising interest rates but somehow keep the Aussie Dollar on a downward trajectory towards its desired level of 0.85c to the Greenback. What the RBA needs is for the 10 Year US Treasury Yield to go over 3% and back towards 3.5% because this will likely drive the US Dollar higher and allow for the RBA to consider raising interest rates. One inflation report doesnt make a trend but it does signal a potential shift in market sentiment re the prospect of the RBA cash rate of 2.5% being the absolute lows. ltggoldrock
Posted on: Wed, 22 Jan 2014 02:52:57 +0000

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