Back
6 Aug 2013
Flash: AUD to suffer limited damage on RBA cut, may squeeze higher - Westpac
FXstreet.com (Barcelona) - Chances of the RBA cutting rates today by 25bp to 2.50% are being priced at 103%, leaving most interest in the tone of the accompanying statement, which will be published at 4.30GMT, notes FX Strategist Sean Callow.
Key Quotes
"With the RBA likely to lower its 2014 growth forecast in Friday's quarterly statement, a dovish tone seems assured, probably including retention of the familiar “scope” to ease line."
"We don’t expect language to hint that they are inclined to move again in Sep (22% priced). The RBA usually prefers not to act at consecutive meetings so Nov seems a more likely window. AUD should suffer limited damage and may even squeeze a little higher."
Key Quotes
"With the RBA likely to lower its 2014 growth forecast in Friday's quarterly statement, a dovish tone seems assured, probably including retention of the familiar “scope” to ease line."
"We don’t expect language to hint that they are inclined to move again in Sep (22% priced). The RBA usually prefers not to act at consecutive meetings so Nov seems a more likely window. AUD should suffer limited damage and may even squeeze a little higher."