After two years on the podium winner is increasingly unlikely that success will continue to haunt the currency. Aussie night rolled back to 0.99, on what impact the weaker-than-expected PPI data and further buying the euro against the Aussie. Swan words about what the economic impact of floods in Queensland will be immense, and the fact that supply chains will also be affected, only confirmed what people already knew. For example, Queensland produces more than three-quarters of Australian coking coal.Local economists believe that will take 20 billion Australian dollars (just over 2% of GDP) to undo the damage, Treasurer Swan will announce their assessments on the following Monday. In addition to the impact on economic growth and exports, additional concerns related to potential increases in inflation. For the Reserve Bank of Australia proper calibration of monetary policy would be extremely difficult in the face of natural disasters.
Against this background, it is not surprising that the Aussie at the end of rides. Since the beginning of the year for Aussie worst performance against the major currencies: it decreased by 3.4% against the dollar by 5% against the euro and by 5.5% against the pound. An interesting fact is that the latest CFTC data suggests that traders are still very optimistic about the Australian currency. Remains to be seen the extent to justify such optimism.
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