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FXstreet.com (London) - Overnight, the biggest moves came from AUD and NZD

The Aussie dollar was pushed higher on comments from Reserve Bank of Australia deputy governor Philip Lowe. Responding to a Q&A question on central bank intervention in the currency, Lowe said: “We don’t rule intervention in or out, that’s been a long-standing practice.”

“In the past, we have been prepared to intervene in the currency market when it’s clear the currency was misaligned or the market wasn’t working well. The threshold for intervention though is fairly high.”

The comment come after RBA governor Glenn Stevens last week said currency intervention couldn’t be ruled out, pushing the Aussie dollar lower.

Though it has fallen 20 percent since the start of the year, concerns remain over the strength of the Aussie dollar and its effects on Australian commodity exports.

AUD/USD is up 43 percent to USD0.9200.

In New Zealand, the Kiwi dollar fell on the continuing effects of speculation that the Reserve Bank of New Zealand could move to further hike the cash rate in January. RBNZ governor Greame Wheeler has been cautious in his approach to a further hike to quell any bubbles in the housing market, preferring to rely on macroprudential tools to keep any frothiness in the market under control.

NZD/USD is down 0.41 percent to USD1.2106.

There is a light day of data in Europe today.

In the UK, Bank of England monetary policy committee members Carney, Bean, and Dale are testifying before the Treasury Select Committee on the November Inflation Report. It is expected that they will maintain the stance taken in the report with upbeat outlooks on the UK economy with a continued emphasis on the 7 percent unemployment level as a threshold rather than a trigger for any rate hikes.

In the US, Case-Shiller HPI numbers are due and are expected to show a twentieth monthly gain on the trot, up 0.9 percent according to market consensus.

PCE and durable goods orders reports are also due form the US, which will give a clue as to consumer and business spending activity ahead of the FOMC meeting mid-December.
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