12 May 2015
Australian budget preview - RBS
FXStreet (Bali) - Brian Daingerfield, FX Trading Strategist at RBS, shares his thoughts ahead of today's Australian budget, noting that the worsening fiscal picture is another medium-term concern that may weigh on the AUD.
Key Quotes
"Australia releases its annual budget on Tuesday, and the worsening medium-term outlook, and fall in terms-of-trade, has weakened the fiscal outlook."
"The worsening fiscal picture is another medium-term concern that may weigh on the AUD. Even-so, the AUD has been supported in the near-term by position clearing – the latest IMM report shows investors are now net long of AUD for the first time since last September - and a more constructive- sounding RBA, even despite a downgraded growth assessment in the Statement on Monetary Policy."
"New home loans and investment spending data are released for March."
"Governor Stevens has also expressed lowered enthusiasm about rate cuts in recent speeches, largely because the committee worries that the impacts of rate cuts may be dampened by already high levels of leverage."
"That may mean it would take a slowdown in credit growth or domestic activity to unlock additional easing."
Key Quotes
"Australia releases its annual budget on Tuesday, and the worsening medium-term outlook, and fall in terms-of-trade, has weakened the fiscal outlook."
"The worsening fiscal picture is another medium-term concern that may weigh on the AUD. Even-so, the AUD has been supported in the near-term by position clearing – the latest IMM report shows investors are now net long of AUD for the first time since last September - and a more constructive- sounding RBA, even despite a downgraded growth assessment in the Statement on Monetary Policy."
"New home loans and investment spending data are released for March."
"Governor Stevens has also expressed lowered enthusiasm about rate cuts in recent speeches, largely because the committee worries that the impacts of rate cuts may be dampened by already high levels of leverage."
"That may mean it would take a slowdown in credit growth or domestic activity to unlock additional easing."