Currency Update: The AUD has fallen against a stronger greenback boosted by better-than-expected US economic data, trading at 0.9465. The AUD began tracking lower yesterday following the release of jobs data showing Australia's unemployment rate was at 5.7% in October. The night was eventful, with the ECB cutting policy rates overnight, which surprised the market, and this led to the EUR weakening against the USD. European equities rose sharply following the announcement but later declined to finish generally lower. Today the RBA will publish its Statement on Monetary Policy, which is likely to provide another fairly subdued near-term outlook for the economy. We expect the Bank's near-term underlying inflation forecast profile to be largely unchanged. The markets continue to think the Bank retains a very mild easing bias, but would be reluctant to act on it without a major development in the global economy, the AUD or the unemployment rate.
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