16 Feb 2015
RBA meeting’s minutes, no thunder expected – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team comments that RBA’s monetary policy statement has already stolen the thunder out of tomorrow’s release of the Australian central bank’s policy meeting minutes, with markets already pricing in another rate cut with 50%+ confidence.
Key Quotes
“The RBA's monetary policy statement likely steals whatever thunder there would have been in its minutes. With a 65%-70% confidence, the market is pricing another rate cut, and the RBA did not lean against such expectations.”
“The Australian dollar has fallen 5% this year and about 16.5% over the past six months.”
“The market is taking the Australian dollar (on a trend basis) in the direction that RBA Governor Stevens has indicated appropriate. With this pace of adjustment, there was no need for the RBA to push it further or faster. The market has taken the idea and is running with it.”
“That said, the downside momentum has faded, and technical factors warn of potential corrective forces.”
Key Quotes
“The RBA's monetary policy statement likely steals whatever thunder there would have been in its minutes. With a 65%-70% confidence, the market is pricing another rate cut, and the RBA did not lean against such expectations.”
“The Australian dollar has fallen 5% this year and about 16.5% over the past six months.”
“The market is taking the Australian dollar (on a trend basis) in the direction that RBA Governor Stevens has indicated appropriate. With this pace of adjustment, there was no need for the RBA to push it further or faster. The market has taken the idea and is running with it.”
“That said, the downside momentum has faded, and technical factors warn of potential corrective forces.”