The recent resilience of the Australian dollar may force the central bank to resume talking down - or "jawboning" - the currency after five months of satisfaction with its level, according to Australia and New Zealand Banking group.
The Australian dollar jumped back towards one-month highs overnight, shrugging off a new low in iron ore prices after the RBA governor told economists they should "chill out" on the prospects for another rate cut next week.
On the other hand the interest rate market has already acted by lifting swap yields in favor of the Aussie dollar and FX traders have bought Aussie Dollar vs. the Euro and GBP. I expect to see more of the same in the weeks ahead. Also worth noting is ...
The Australian dollar plunged on Monday, as further greenback support and the resulting commodity price weakness reversed a week-long rally driven mainly by investors unwinding or covering bets the local unit would decline.