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17 Jul 2013
Flash: August RBA rate cut still projected – NAB
FXstreet.com (New York) - For currency markets, the USD was generally weaker throughout the earlier sessions, presumably due to positioning ahead of Ben Bernanke’s testimony today, suggests Strategist Robert Henderson at NAB.
Over the past 24 hours the USD lost ground against all of the currencies in the G-10 basket. Commodity prices rose with the weaker USD, the exception being the price of oil, which came off as tensions in the Middle East seemed less pronounced.
In particular, the AUD rallied yesterday after the RBA Minutes, as the market interpreting them as less dovish and cutting the chances of a rate cut in August to 54%, from 63% before the Minutes were released. “We acknowledge the outcome of the August RBA meeting will be close but continue to expect a 25bps cut in rates.” Henderson adds.
Over the past 24 hours the USD lost ground against all of the currencies in the G-10 basket. Commodity prices rose with the weaker USD, the exception being the price of oil, which came off as tensions in the Middle East seemed less pronounced.
In particular, the AUD rallied yesterday after the RBA Minutes, as the market interpreting them as less dovish and cutting the chances of a rate cut in August to 54%, from 63% before the Minutes were released. “We acknowledge the outcome of the August RBA meeting will be close but continue to expect a 25bps cut in rates.” Henderson adds.