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4 May 2015
RBA expected to lower rates to 2.0% - Scotiabank
FXStreet (Edinburgh) - Camilla Sutton, Chief FX Strategist at Scotiabank, believes the RBA could cut its repo rate by 25 bp to 2.0% in tomorrow’s meeting.
Key Quotes
“AUD is flat from Friday’s close, trading comfortably between the 50‐day and 100‐day moving averages (0.7745 and 0.7870, respectively)”.
“The near‐term risk is a test down to the 50‐day as the we enter the RBA interest rate decision”.
“Inflation and employment were stronger than expected and iron ore prices have climbed off their lows; however most metrics are still low, the data is uneven and AUD has rallied over 3% since its April lows”.
“The economic backdrop combined with the RBA’s easing bias is likely to see another 0.25% rate cut this week, bringing rates to 2.0%”.
Key Quotes
“AUD is flat from Friday’s close, trading comfortably between the 50‐day and 100‐day moving averages (0.7745 and 0.7870, respectively)”.
“The near‐term risk is a test down to the 50‐day as the we enter the RBA interest rate decision”.
“Inflation and employment were stronger than expected and iron ore prices have climbed off their lows; however most metrics are still low, the data is uneven and AUD has rallied over 3% since its April lows”.
“The economic backdrop combined with the RBA’s easing bias is likely to see another 0.25% rate cut this week, bringing rates to 2.0%”.