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Aussie rebounds from lows on tax, trade comments; US GDP due

The AUDUSD fell to new three-month lows in yesterday's trade before rebounding overnight as the US dollar continued to see political driven volatility.

The US dollar market has been volatile as markets react to political commentary around NAFTA (North American Free Trade Agreement) and new tax regulations.

Despite the Aussie’s overnight rebound, the AUDUSD still ended yesterday’s session lower, with the pair down 0.2%.

ECB still on hold

In other markets, the European Central Bank meeting was the major event overnight.

The ECB signalled they’re not yet ready to end their money printing program and we’ve seen a reversal higher in AUDEUR. The AUDEUR was up 0.1% but rebounded solidly from earlier lows.

The Aussie continued to fall versus the British pound with the AUDGBP down 0.6% to trade at the lowest levels since September.

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In Australia, the major releases include producer prices and private sector credit.

While UK GDP data is due, the major release will be US GDP to be announced at 10.30pm (AEST).

The market is looking for a relatively small 1.3% result in annual terms.

By Steven Dooley -- Currency Strategist

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