The US dollar was better bid against most of its peers on Wednesday morning as global stocks tread water. #
The dollar index edged up 0.05% to 94.78 as the single currency tumbled on the 1.17 resistance, while the Australian dollar fell the most within the G10 complex, down 0.40% on the session.
Despite the fact that key economic data are due for release later today, investors will remain focus on NAFTA’s revamp talks. Indeed, the big question now is whether Canada will follow Mexico’s footsteps and accept the amendments proposed by the Trump administration. The loonie was one of the only G10 currencies, with the Japanese yen, to edge higher against the dollar, up 0.05% with USD/CAD down to 1.2930.
The Aussie slid as low as $0.7299 after Westpac (AX:WBC), one of Australia’s largest lenders, announced it would lift its variable mortgage interest rates. The announcement triggered a selling in the Aussie as investors anticipated it would negatively affect economic growth. The decision will also keep the RBA side-lined for a longer period of time. The 2-year sovereign yield dropped more than 4bps to 1.97%, its lowest level since late May this year as traders lowered their expectations regarding the timing of the next rate hike. Therefore, it may take longer before seeing AUD/USD back around the $0.80 area.
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