Back
11 Feb 2014
Flash: AUD/USD moved by RBA burial of rate cut expectations - UOB Group
FXStreet (Barcelona) - Lee Sue Ann, Market Strategist at UOB Group notes that AUD/USD saw a strong rally last week, culminating in hitting the 0.9000 mark last night.
Key Quotes
“This followed the outcome of the latest RBA monetary policy announcement. The RBA left the cash rate unchanged at 2.5%, as widely expected, but they also provided an unusual degree of specificity with their forward guidance, saying that, "the most prudent course is likely to be a period of stability in interest rates".
“Essentially, Governor Glenn Stevens and the Board buried any lingering interest rate cut expectations, moving to a neutral bias from the previous easing bias. Besides, they also removed the description of the AUD as being "uncomfortably high".”
“This week, the highlight in the week will be the release of the January labour force figures on Thursday, especially given the shocker in December’s report. The markets are looking for a reversal of the 22.6k fall, with a gain of 15k expected, and for the unemployment rate to be at 5.9%.”
“Before that, housing finance data and NAB business confidence are released on Tuesday, alongside the Westpac consumer confidence on Wednesday, whilst RBA Assistant Governor Debelle and RBA’s Kent are due to speak on Thursday and Friday respectively.”
Key Quotes
“This followed the outcome of the latest RBA monetary policy announcement. The RBA left the cash rate unchanged at 2.5%, as widely expected, but they also provided an unusual degree of specificity with their forward guidance, saying that, "the most prudent course is likely to be a period of stability in interest rates".
“Essentially, Governor Glenn Stevens and the Board buried any lingering interest rate cut expectations, moving to a neutral bias from the previous easing bias. Besides, they also removed the description of the AUD as being "uncomfortably high".”
“This week, the highlight in the week will be the release of the January labour force figures on Thursday, especially given the shocker in December’s report. The markets are looking for a reversal of the 22.6k fall, with a gain of 15k expected, and for the unemployment rate to be at 5.9%.”
“Before that, housing finance data and NAB business confidence are released on Tuesday, alongside the Westpac consumer confidence on Wednesday, whilst RBA Assistant Governor Debelle and RBA’s Kent are due to speak on Thursday and Friday respectively.”