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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