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Tests Session Lows

AUD

A small bounce in the USD sees AUD/USD breach fresh session lows and drop outside of yesterday's range at 0.7716. The move lower is despite upbeat inflation expectations, the February print rose to 3.7% from 3.4% previously.

Some comments from Australian Treasurer Kennedy crossing the wires:

  • Economy recovering faster than expected, quietly confident recovery is locked in.
  • Government support will remain for the next 2-3 years.
  • Public investment is high and is expected to remain high
  • He is surprised that the labour force participation rate is back at record levels.
  • His comments are fairly upbeat, and the timeframe of 2-3 years government support is similar to the RBA outlook of 2024 for removal of monetary policy support.

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