Re: Why is the AU and NZ dollars falling today?
This is due to the Reserve Bank of Australia kept interest rates unchanged at 7.25% as widely expected, yet the Aussie dropped as a result of the statement that accompanied this rate release. The RBA issued a statement that it does not deny the possibility of cutting interest rates, and investors are likely to witness changes around September. This reflected the increase of the RBA's less restricting policy.
As per my knowledge this statement can make traders speculate that the RBA will cut interest rates rather that raising them in the near future, the reverse of what traders speculated prior to the release of this statement. Up until that moment, traders will be convinced that interest rates will rise in order to fight the strong inflationary forces.
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