6 Jul 2015
AUD/USD: near-term risks centered on the RBA – Scotiabank
FXStreet (Barcelona) - Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank, notes that RBA’s policy decision remains the key near-term risk for AUD/USD, with markets pricing in 65% chance of a rate cut over the next 12 months.
Key Quotes
“AUD is down 0.4% from Friday’s close, having recovered modestly from fresh multi-year lows early in the Asian session. While AUD remains sensitive to broader market developments, the near term focus is centered on the RBA (12:30am EST) and its tone with regards to the exchange rate given its expectations of a ‘likely and necessary’ depreciation. AUD OIS are pricing in a 65% chance of a 25bpt rate cut over the next 12 months.”
Key Quotes
“AUD is down 0.4% from Friday’s close, having recovered modestly from fresh multi-year lows early in the Asian session. While AUD remains sensitive to broader market developments, the near term focus is centered on the RBA (12:30am EST) and its tone with regards to the exchange rate given its expectations of a ‘likely and necessary’ depreciation. AUD OIS are pricing in a 65% chance of a 25bpt rate cut over the next 12 months.”