30 Jul 2013
After Aus housing dismal data, RBA Aug cut done deal?
FXstreet.com (Barcelona) - Was the big miss in Australia's housing approvals the straw that broke the camel's back, assuring another RBA rate cut on August 6th after three consecutive meetings on hold?
The market appears to be counting on it, well manifested on the performance of the Australian Dollar, which is broadly cheaper across all its G10 peers. The AUD/USD fell initially from 0.92 to 0.9180, only to accelerate losses towards 0.9155.
According to David Scutt, Treasury Dealer at Arab Bank Australia, being cited from his Twitter account, "though it was units primarily dragging approvals down, the data is simply too weak to offset the slowdown in mining activity." On top of that, Scutt points at a massive downward revisions for May building approvals, suggesting "RBA now certain to cut on a lack of rebalancing."
According to IFR Markets Chief, John Noonan: "Weaker Aus Building data won't please the RBA ahead of next week's decision." All eyes will be now on Governor Stevens speech at 3.05 GMT.
The market appears to be counting on it, well manifested on the performance of the Australian Dollar, which is broadly cheaper across all its G10 peers. The AUD/USD fell initially from 0.92 to 0.9180, only to accelerate losses towards 0.9155.
According to David Scutt, Treasury Dealer at Arab Bank Australia, being cited from his Twitter account, "though it was units primarily dragging approvals down, the data is simply too weak to offset the slowdown in mining activity." On top of that, Scutt points at a massive downward revisions for May building approvals, suggesting "RBA now certain to cut on a lack of rebalancing."
According to IFR Markets Chief, John Noonan: "Weaker Aus Building data won't please the RBA ahead of next week's decision." All eyes will be now on Governor Stevens speech at 3.05 GMT.