The RBA is up this week! The markets are pricing in a "neutral hold" event that may pave the way for a "buy the rumor, sell the news" scenario for the Australian dollar.
But what if AUD extends its downtrends instead?
In case you missed last week's FX Weekly Recap, you should know that the Japanese yen had a GREAT week following a surprise rate hike from the Bank of Japan (BOJ) and a few rounds of risk aversion in the markets.
On the other hand, the Australian dollar saw heavy losses amidst China growth concerns and cooler-than-expected core inflation measures in Australia diminishing rate hike expectations for the Reserve Bank of Australia (RBA).