Two More of Australia’s Big Four Raise Rates

Thursday, September 6 – Asia Session Recap

During the Asia-Pacific session, AUD remained pressured as two more banks increased mortgage rates. ANZ and Commonwealth Bank have joined Westpac who announced an increase last week.

Although the rate rises are marginal, they are likely to weigh on RBA rate hike expectations. Furthermore, they could weigh on housing demand which is already under pressure.

As such, AUDUSD is trading firmly back below the 0.72 handle while AUDJPY trades back below the 80.00 handle.

During the Asia-Pacific session, JPY remained well supported by safe haven flows and repatriation flows. This follows from a magnitude-6.7 earthquake on the island of Hokkaido.

For additional research, we’ve posted news articles from around the web below.