Aussie’s Brief Reprieve Ahead of RBA

The damaged Aussie attempts some stabilization after a 14% decline over the last 2 months but little has changed in the way of fundamentals. Last week's IMF's report warning of capital flight out of the Aussie, the prior week's rebound in Chinese money market rates, and recent indications from the Federal Reserve suggesting an earlier than anticipated tapering of asset purchases are all negatives against the once darling of the carry trade. See full article and chart