Friday, October 23, 2015

AUD/USD testing 0.72 as NAB raises mortgage rates

FXStreet (Bali) - National Australia Bank, following the steps previously taken by Westpac and CBA (this one yesterday) has raised its variable mortgage rate by 17 bp.

ANZ remains the only major bank that has yet to adjust its variable mortgage rate in order to comply with new regulatory requirements on larger capital buffers.

Read: RBA closer to cut rates after CBA move?

AUD/USD has dropped some odd 20 pips from 0.7222 down towards 0.72, with bids still reportedly solid down around 0.7180, where two strong rejection where seen on Thursday.

On the big scheme of things, option market makers increased implied volatility in AUD/USD to 12.95 vs 12.62, with the 25 RR delta now negative in the tune of over -1.6 down from -1.1 prior to the ECB, meaning the premium being paid to own puts has increased, suggesting the market is expecting AUD/USD to get cheaper in days/weeks to come.
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