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17 Jun 2013
Flash: AUD/USD may weaken further after RBA minutes - DailyFX
FXstreet.com (Córdoba) - The AUD/USD continued to give back the rebound from earlier this month, slipping to a low of 0.9508.
According to David Song, Currency Analyst at DailyFX, the Australian dollar may weaken further over the next 24-hours of trading as the RBA keeps the door open to implement another rate cut. "Indeed, the RBA Minutes may highlight a greater willingness to push the benchmark interest rate to a fresh record-low in order to combat the slowing recovery, and we may see Governor Glenn Stevens strike a highly dovish tone for monetary policy as China – Australia's largest trading partner – remains at risk for a 'hard landing'", Song said.
"In turn, the RBA may take further steps to insulate the $1T economy, and the central bank may continue to embark on its easing cycle in the second-half of the year as commercial banks remain reluctant to pass on the rate cuts to households and businesses", DailyFX analyst concluded.
According to David Song, Currency Analyst at DailyFX, the Australian dollar may weaken further over the next 24-hours of trading as the RBA keeps the door open to implement another rate cut. "Indeed, the RBA Minutes may highlight a greater willingness to push the benchmark interest rate to a fresh record-low in order to combat the slowing recovery, and we may see Governor Glenn Stevens strike a highly dovish tone for monetary policy as China – Australia's largest trading partner – remains at risk for a 'hard landing'", Song said.
"In turn, the RBA may take further steps to insulate the $1T economy, and the central bank may continue to embark on its easing cycle in the second-half of the year as commercial banks remain reluctant to pass on the rate cuts to households and businesses", DailyFX analyst concluded.