Australia raises rates 25 basis points

As expected Australia raised interest rates 25 basis point to 5.5% last night. The currency initially made a small move higher then came off hard currently settling at .7800. I feel this is just the beginning of the move. Recently they have reported weak GDP numbers as well as an extremely worrying current account number. Also the housing market which have propelled growth in recent years is showing increasing signs that it may be topping out. Couple all this with an improved outlook here in the states and I see Aud falling further in the coming weeks.

I also would be watching closely any high yielding currencies. Those will be under the most pressure as rates in the states continue to drift higher.