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9 Oct 2013
Flash: RBA cut still most likely scenario Q1 2014 - Westpac
FXstreet.com (Barcelona) - The RBA’s neutral tone last week has lowered the odds for a rate cut in Q4 2013, notes Westpac.
Key Quotes
"Bouncing confidence measures add to the ‘wait and see’ stance yet a likely >4 year high in unemployment in Sep (Thu) will be a reminder of why a cut is still the most likely next cash rate change (Q1 14)."
"Local news flow should broadly cancel out, leaving the Aussie to respond to US political developments."
"This should chip away at equities (AUD negative) but hurt US growth outlook and keeps the Fed on hold for longer (positive)."
"This should leave AUD/USD spending more time with a 0.94 handle in a 0.9370/90 to 0.9520/30 range."
Key Quotes
"Bouncing confidence measures add to the ‘wait and see’ stance yet a likely >4 year high in unemployment in Sep (Thu) will be a reminder of why a cut is still the most likely next cash rate change (Q1 14)."
"Local news flow should broadly cancel out, leaving the Aussie to respond to US political developments."
"This should chip away at equities (AUD negative) but hurt US growth outlook and keeps the Fed on hold for longer (positive)."
"This should leave AUD/USD spending more time with a 0.94 handle in a 0.9370/90 to 0.9520/30 range."