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The Aussie took third place behind the Japanese yen and

US dollar. It lost narrowly to the USD and strengthened by

two thirds of a cent against the pound. Australian economic

data were conspicuous by their absence. The only ones to

appear were for private sector credit in February. Lending

to individuals and companies increased by a monthly 0.3%

and was 4.2% higher on the year. Investors did not really

notice.

What they did notice, though, was guidance from the

Reserve Bank of New Zealand that its next change to

interest rates was likely to be a cut. Although there is no

direct link between the RBNZ and the Reserve Bank of

Australia, investors decided that such a move would be

likely to affect the thinking of the RBA. It does not have

much room to take rates lower but it might be inclined to

try to find some.

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