8 Nov 2013
Flash: Plenty of interest in the RBA QSMP - Westpac
FXstreet.com (Barcelona) - The RBA statement on Tue left some market participants confused so there should be plenty of interest in the quarterly Statement on Monetary Policy at 00.30GMT today, notes Sean Callow, FX Strategist at Westpac.
Key Quotes
"Most eye-catching in Tue’s brief statement was the stronger language on AUD, declaring it “still uncomfortably high”, which produced some modest AUD selling. No doubt today’s report will include similar rhetoric which could unsettle AUD."
"But there is unlikely to be any specific rate cut threat. Indeed the growth forecasts should remain quite optimistic. If there is no change in their key forecasts from Aug then they will be looking for a soft 2.25% in 2013 and a still muted 2.5% y/y for June 2014 but an acceleration to 3.0% y/y by Dec 2014. Inflation forecasts should be little changed."
Key Quotes
"Most eye-catching in Tue’s brief statement was the stronger language on AUD, declaring it “still uncomfortably high”, which produced some modest AUD selling. No doubt today’s report will include similar rhetoric which could unsettle AUD."
"But there is unlikely to be any specific rate cut threat. Indeed the growth forecasts should remain quite optimistic. If there is no change in their key forecasts from Aug then they will be looking for a soft 2.25% in 2013 and a still muted 2.5% y/y for June 2014 but an acceleration to 3.0% y/y by Dec 2014. Inflation forecasts should be little changed."