Trading the RBA: You want it, you got it – TDS

Prashant Newnaha, Senior Asia-Pacific Rates Strategist at TD Securities (TDS) offer four scenarios on the Reserve Bank of Australia’s (RBA) monetary policy decision and its impact on the Australian dollar.

Key Quotes:

“TD and the market expect the RBA to cut the cash rate tomorrow by 25bps to 1.25%. It would be highly unusual for the Bank to keep the cash rate on hold when the cut is fully priced.

The RBA has traditionally refrained from injecting a bias when the cash rate has been cut. We expect the same this time. Gov Lowe's speech tmrw at 5.30pm AEST is likely to be more influential for markets.”