From the FXWW Chatroom – Westpac raised their standard variable rate for mortgages by 14bp to 5.38% which has caused a slightly delayed reaction in the currency and rates markets. AUD has traded to its day’s lows versus the USD and in the crosses, losing 35+ points, 30 minutes or so after the headline. The market should have been well aware of these moves potentially happening by the big domestic lenders given they, and Westpac in particular have been highlighting their increasing funding costs. Rates market has rallied across the board led by the short end as this is another dampener on chances of rate hikes by the RBA themselves.
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