Australian, New Zealand and Canadian Dollars Hit by Carry Trade Liquidation Despite RBA Rate Hike
The Reserve Bank of Australia raised interest rates to 7 percent, leaving Australia as the only country raising interest rates since the Fed delivered their emergency rate cut.
The Australian dollar sold off on the announcement because the statement suggested that the RBA will be on hold for a few months before making another move. With 7 percent rates, the Australian dollar is still one of our favorite currencies from a fundamental and technical perspective. The Canadian and New Zealand dollars will be the currencies to watch over the next 24 hours with Canada releasing IVEY PMI and New Zealand releasing their employment numbers.