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4 May 2015
AUD/USD to test 0.75 if RBA cuts rates in tomorrow’s meeting – MarketPulse
FXStreet (Barcelona) - With market expectations for a RBA rate cut in tomorrow’s meeting high, Dean Popplewell, Director of Currency Analysis and Research at MarketPulse, sees downside potential for AUD/USD towards 0.75.
Key Quotes
“The RBA meets tomorrow and the market is pricing in a +72% chance of a -25bps cut to +2%. Last week’s AUD move above AUD$0.80c would have alarmed the RBA.”
“If the RBA cuts, watch whether the statement leave the door ajar for further cuts. If it does, the AUD outright should make tracks back down towards AUD$0.75c, its old stomping ground.”
“Any hesitation by the RBA and the Aussie bears should come under considerable pressure, especially after last weeks selling interest that has established ‘hot’ money short positions north of AUD$0.80c.”
“The upcoming decision is providing a headwind for the AUD currency with AUD/USD at 0.7830 just ahead of the NY morning.”
Key Quotes
“The RBA meets tomorrow and the market is pricing in a +72% chance of a -25bps cut to +2%. Last week’s AUD move above AUD$0.80c would have alarmed the RBA.”
“If the RBA cuts, watch whether the statement leave the door ajar for further cuts. If it does, the AUD outright should make tracks back down towards AUD$0.75c, its old stomping ground.”
“Any hesitation by the RBA and the Aussie bears should come under considerable pressure, especially after last weeks selling interest that has established ‘hot’ money short positions north of AUD$0.80c.”
“The upcoming decision is providing a headwind for the AUD currency with AUD/USD at 0.7830 just ahead of the NY morning.”