Breaking News: Australian Dollar Collapses; What’s Going on?

The National Australia Bank (NAB) has raised mortgage rates by 12 to 16 basis points from January 31. The market wasn’t ready to brace the impact as the news came out all of a sudden. Speaking of the rate hike, NAB remarked that the rate rise is due to a sustained increase in funding costs.

The bank announced an owner-occupier with a $300,000 home loan on a 30-year term would return an additional $22 each month in principal and interest repayments, and this makes a $264 increase each year.

The AUD/USD pair collapsed dramatically more than 50 pips to trade around $0.7107. The pair is likely to gain next support around $0.7085.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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