7 Jul 2015
RBA to keep Aussie under pressure – BBH
FXStreet (Edinburgh) - The research team at BBH expects upside in the AUD to remain capped in the medium term.
Key Quotes
“The Reserve Bank of Australia kept rates steady at 2%, as expected, but Governor Stevens continued to talk down the Aussie”.
“While the governor conceded the decline against the dollar, he noted that it has declined less so against a basket of currencies”.
“Therefore, “further depreciation seems both likely and necessary.”
“All in all, the comments seem in line with markets pricing a high probability of another rate cut in the coming months”.
“Yields on Australian bond and interest rate futures were lower on the day, but in line with moves seen in global rates markets”.
Key Quotes
“The Reserve Bank of Australia kept rates steady at 2%, as expected, but Governor Stevens continued to talk down the Aussie”.
“While the governor conceded the decline against the dollar, he noted that it has declined less so against a basket of currencies”.
“Therefore, “further depreciation seems both likely and necessary.”
“All in all, the comments seem in line with markets pricing a high probability of another rate cut in the coming months”.
“Yields on Australian bond and interest rate futures were lower on the day, but in line with moves seen in global rates markets”.