Bloomberg reported that suspicious jump on Australian Dollar that is similar to the one which has triggered an investigation last month happened again following the release of RBA interest rates decision yesterday.

Following the release of Reserve Bank of Australia (RBA) interest rates decision yesterday (7/4), the Australian Dollar gained mainly because analysts expected it to drop rates due to patchy economic reports. However, aside of the less-than-expected decision, another news came to light. Bloomberg reported that suspicious jump on Australian Dollar that is similar to the one which has triggered an investigation last month happened again.

SuspiciousA screenshot from Bloomberg showed 0.7% jump before RBA statement released on April 7

This occurence marked the third times in a row Aussie moved sharply just seconds before RBA announced their monthly interest rate decisions. Although such spikes deviated from the norm, last month we have mentioned several possibilities in answer to the question of why the price jumped. Trades done based on insider information seems likely, but it is also possible for other circumstances to cause it. Related to this case, Sean Keane from Triple T Consulting told Bloomberg that lack of liquidity may also lead to distorted algorithms on some high frequency traders.

Indeed, it required a superbly bold person/s to keep doing something even when the case is already under investigation; thus it may make more sense for it to be caused by a combination between market conditions and a set of established trading system. Nevertheless, it was only speculation at this point of time as Australian authorities is reportedly still investigating the matter. Though undoubtedly if it later emerges as the work of insider trading, then a heavy penalty awaits the suspect in court as two defendant in similar kind of case have been jailed last month.