AUD/USD remains weighed by risk off sentiment Monday, with the pair breaking parity this morning for the first time in five months. Signs of softness in the domestic economy are also weighing on the AUD/USD as the government enforces tight fiscal settings in order to return a budget surplus and as benign inflation clears the way for additional monetary policy easing. AUD/USD broke the parity level this morning in Asia, with the pair finding little respite from the China RRR cut, trading down to a low of $0.9994 although there was no follow through on the move lower. The pair recovered to trade up to $1.0027, given a moderate boost from RBA Deputy Governor Philip Lowe’s comment that the economy must adjust to a higher forex rate. The rate remains in a negative bias.
EasyForexNews Research Team