30 Jul 2013
Flash: RBA to cut in August; AUD/USD may break 0.90 - HSBC
FXstreet.com (Barcelona) - On Tuesday 6th of August the Reserve Bank of Australia will communicate the latest decision on interest rates, with the HSBC FX Team expecting a 25bp rate cut.
Key Quotes
"This not fully priced in since only 18 out of 29 economists are looking for a cut; in fact our bond strategists estimate that the ASX cash rate futures implies 72% probability of a 25bp cut at this meeting."
"On the FX front we believe that the weak China PMI, the FOMC and the US employment data will all see the AUD on the back foot. If the actual rate cut transpires this could push AUD even lower and perhaps break the psychologically important 0.90."
Key Quotes
"This not fully priced in since only 18 out of 29 economists are looking for a cut; in fact our bond strategists estimate that the ASX cash rate futures implies 72% probability of a 25bp cut at this meeting."
"On the FX front we believe that the weak China PMI, the FOMC and the US employment data will all see the AUD on the back foot. If the actual rate cut transpires this could push AUD even lower and perhaps break the psychologically important 0.90."