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GBP/AUD May Currency Update       started by HiFX on 10 Jun 2010   (22877)
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From HiFX

10 Jun 2010 1:53 AM
Employment data showed 33,500 new jobs were created in April but the Unemployment Rate rose to 5.4% from 5.3% as more workers (re)entered the jobs market. The numbers gave a temporary boost to the AUD but deeper concerns about Chinese growth and the consequences of European austerity packages underpinned a safe haven move into US Dollars. With current global asset markets in turmoil and domestic concerns around the proposed mining super-profit tax the chances of RBA to rate hikes over the next two or three months were receding rapidly. However, there was a rate hike of .25 bps to 4.50% in the accompanying statement the RBA certainly did not discount further increases if inflationary pressures start to feed into the economy, but it would appear the first phase of tightening from emergency to