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AUD/USD under the hammer, higher odds of RBA rate cuts?

FXStreet (Bali) - Following the announcement by Westpac to raise home loan rates by 0.2% in order to meet new requirements on capital against mortgages, while will also raise $3.5 billion through a share entitlement offer to boost capital reserves.

AUD/USD has been under the hammer since the NY close, with some market chatter that other banks may now follow steps by Westpac, which may results in higher chances of the RBA cutting rates, as the economy is in no position to sustain a rate hike at present.

AUD/USD charts offer a bearish continuation - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the Aussie took a hit from Chinese data, ending the day sharply lower against the greenback around 0.7270.
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RBNZ to hold rates in Oct, cut in December - Westpac

Following RBNZ Governor Graeme Wheeler's speech earlier today, Westpac economists continue to endorse their core view of rates being on hold at the Oct 29 meeting, while calling for a cut of 25bps in December. Their in-house rates forecast for 2016 is now under revision, with results subject to pending Q3 inflation data (due Friday) "with an eye to shifting towards forecasting OCR cuts below 2.5% at a later time", the bank said.
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