Australian dollar the laggard today
The Australian dollar is struggling to get off the lows today. It's down 40 pips to 0.7101 after falling as low as 0.7085. That's the lowest since January 3.
Technicaly, the 100 and 55-day moving averages capped the gains today. The high came after solid employment data but the selling hit after NAB jacked up mortgage rates by 12-16 basis points citing a sustained increase in funding costs.
The implication of a bank hiking rates out of step with the central bank is worrisome. It will add pressure on the central bank to cut the cash rate. Watch the other big Australian banks for other signs of rising rates, especially if they cite wholesale costs.
Technically, there isn't much in the way of support until the late-December highs near 0.7075. Watch for stops on a break of that level and the session low.
