The Australian Securities and Investments Commission (ASIC) has confirmed that it will investigate a spike in the Australian dollar shortly before the Reserve Bank’s monetary policy decision today.
The investigation will look at trading in the dollar prior to the Reserve Bank of Australia’s interest rate decision statement at 2.30pm.
This morning, the Australian dollar spiked 90 pips against the US dollar, a matter which regulatory authorities are now beginning to look closely at since the exposure to risk which was created on January 15 by the Swiss National Bank’s removal of the 1.20 peg on the EURCHF pair.
ASIC is also investigating foreign exchange movements shortly before the Reserve Bank of Australia’s announcements in February and March 2015.
It is unusual for a financial markets regulatory authority to involve itself in the market value of currencies, therefore this represents a pioneering step by ASIC.
For the official announcement from ASIC, click here.
Chart courtesy of xe.com