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19 Feb 2013
Forex Flash: RBA minutes next; traders to focus on cut threats - Westpac
The release of the minutes from the RBA Board’s 5 Feb meeting at 00.30GMT will center market attention in Asia. According to Westpac FX analyst Sean Callow, "while the subsequent Statement on Monetary Policy should have provided all the detail we need on the RBA view, selected quotes from the minutes do sometimes move AUD..."
As a reminder, "on the day, Gov Stevens said a steady hand was warranted given some better global news over year end and the “substantial easing of policy” already in place, balanced against below trend domestic growth and muted inflation" Sean says.
In view of Mr. Callow, "AUD traders should be mostly focused on whether 'scope to ease policy further' seems to be a clear threat of a rate cut soon or more of a rhetorical device to prevent markets from swinging towards pricing flat or even higher rates."
As a reminder, "on the day, Gov Stevens said a steady hand was warranted given some better global news over year end and the “substantial easing of policy” already in place, balanced against below trend domestic growth and muted inflation" Sean says.
In view of Mr. Callow, "AUD traders should be mostly focused on whether 'scope to ease policy further' seems to be a clear threat of a rate cut soon or more of a rhetorical device to prevent markets from swinging towards pricing flat or even higher rates."