RBA steps into the neutral zone – TDS


Annette Beacher, chief Asia-Pacific macro strategist at TD Securities, suggests that the RBA Governor speech to the National Press Club revealed a more neutral stance than that suggested in yesterday’s RBA Board policy statement.

Key Quotes

“On the lack of “the next move is up” that market participants were looking for, AUD slides 80 pips to $US0.716 and OIS pricing jumps to 70% risk of a cut by November.”

“If housing and consumption need support that scenario suggests cut. The TD view is that housing is ‘correcting’, rate cuts likely ineffective, and wage increases are coming. After a long pause, the next move is up.”

“Dr Lowe claimed that the housing boom was “driven mostly by lack of supply”.”

Products You May Like

Articles You May Like

USD/INR 1 Month NDF to once again target the 69.80/44 area – Commerzbank
Kiwi surges on less-dovish RBNZ
Eurozone December industrial production -0.9% vs -0.4% m/m expected
EUR/USD falls below the 1.13 handle for the first time in just over two weeks
Australian housing finance approvals have been weakening – preview of today’s release

Leave a Reply

Your email address will not be published. Required fields are marked *