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26 Feb 2015
RBA rate cut unlikely next week – GrowthAces
FXStreet (Barcelona) - The Growth Aces Research Team maintains a long position for AUD/USD, and further expect RBA to keep rates on hold into next week.
Key Quotes
“Figures from the Australian Bureau of Statistics showed investment fell 2.2% qoq to AUD 37.47 billion in the fourth quarter of 2014, the lowest result since late 2011. Early spending plans for 2015/16 were also on the weaker side of expectations at AUD 109 billion, with sectors outside of mining reluctant to invest.”
“The Reserve Bank of Australia cut rates to a record low of 2.25% and interbank futures imply a 52% probability of an easing next week (on Tuesday).”
“We should note that forward interest rates had not moved to price in any more likelihood of a cut in borrowing costs after weak data.”
“In our opinion the RBA will keep rates on hold next week.”
“The AUD/USD fell after business investment numbers but recovered quickly and traded near 0.7900. We maintain our trading strategy to buy AUD/USD on dips.”
Key Quotes
“Figures from the Australian Bureau of Statistics showed investment fell 2.2% qoq to AUD 37.47 billion in the fourth quarter of 2014, the lowest result since late 2011. Early spending plans for 2015/16 were also on the weaker side of expectations at AUD 109 billion, with sectors outside of mining reluctant to invest.”
“The Reserve Bank of Australia cut rates to a record low of 2.25% and interbank futures imply a 52% probability of an easing next week (on Tuesday).”
“We should note that forward interest rates had not moved to price in any more likelihood of a cut in borrowing costs after weak data.”
“In our opinion the RBA will keep rates on hold next week.”
“The AUD/USD fell after business investment numbers but recovered quickly and traded near 0.7900. We maintain our trading strategy to buy AUD/USD on dips.”