AUD/USD hits 20-day low on NAB’s mortgage rate hike

• AUD hit a 20-day low soon before press time, having hit a high of 0.7167 earlier today.
• NAB’s mortgage rate hike has strengthened the case for a cut in official rates.  

The Aussie dollar is being offered as a mortgage rate hike by a major Australian bank is seen accentuating the housing market slowdown and force the RBA to cut rates.  

As of writing, the AUD/USD pair is trading at 0.7112, having clocked a low of 0.7107 – a level last seen on Jan. 4 –  soon before press time.  

The Australian currency ran into offers near 0.7150 earlier today after the National Bank of Australia announced that from next Thursday it will raise its standard variable rate for owner-occupiers repaying principal and interest by 0.12 percentage points to 5.36 percent.

The move comes months after Commonwealth Bank, Westpac, and ANZ imposed out-of-cycle hikes.  

Looking ahead, the pair may find acceptance below 0.71 o rising odds of RBA rate cut. Potential risk aversion in equities would only add to the bearish pressures around the AUD.  

AUD/USD Technical Levels