Markets were relatively quiet with the US on holiday and investors took the opportunity to take profits off the table. Grinding its way above the 0.72 handle, the Aussie opens this morning at 0.7209 after a dismal start to the week which saw the Pair touch its lowest level in 20 months.
The Australian Dollar spent much of Monday below the 0.72 level, bouncing between 0.7164 and 0.7215 for much of the session. The impetus for the declines were poor domestic figures and growing concerns over mortgage rate increase, with the latest salvo from the ABS also hurting the Aussie. M/M Retail Sales was released in Australia on Monday, showing a 0% gain against a forecast of 0.3% growth, a decidedly bearish outcome. The Aussie also felt the impact of disintegrating relations with China and the escalating US-China trade war. Overall, the mix of negative news pushed the Aussie lower.
The Aussie now turns its focus to the RBA policy announcement slated for release at 2:30 this afternoon. While widely expected to be neutral in tone, the key interest for pundits will be whether the RBA will respond to the recent nudge up in mortgage rates from a number of the banks in Australia.