The Australian dollar was rising at the start of today’s trading session, but the rally failed and the currency is trading below the opening level right now.
Reserve Bank of Australia Deputy Governor Philip Lowe said today:
We donât rule intervention in or out, thatâs been a long-standing practice. In the past, we have been prepared to intervene in the currency market when itâs clear the currency was misaligned or the market wasnât working well. The threshold for intervention though is fairly high.
At first, traders interpreted the comments and a suggestion that the currency is not strong enough to warrant an intervention. But it looks like more pessimistic outlook prevailed by now.
AUD/USD fell from 0.9159 to 0.9142 as of 10:45 GMT today after rising to 0.9203. AUD/JPY dropped from 93.11 to 92.71.
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