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20 Mar 2015
What to expect from RBA's Stevens today? - RBS
FXStreet (Bali) - The FX Strategy Team at RBS shares his view on today's RBA Governor Stevens speech, expecting him to continue jawboning the AUD.
Key Quotes
RBA Governor Stevens speaks after minutes from the RBA’s March meeting released earlier this week suggested that the RBA will likely lower the target rate again.
We expect the RBA to trim the benchmark rate at their April meeting. We expect the Governor to continue to jawbone the currency, noting that the RBA still sees the AUD “above most estimates of its fundamental value.”
A still-weak outlook for commodity demand in China paired with a likely RBA rate cut leaves us negative on the AUD vs. both the USD and NZD.
Key Quotes
RBA Governor Stevens speaks after minutes from the RBA’s March meeting released earlier this week suggested that the RBA will likely lower the target rate again.
We expect the RBA to trim the benchmark rate at their April meeting. We expect the Governor to continue to jawbone the currency, noting that the RBA still sees the AUD “above most estimates of its fundamental value.”
A still-weak outlook for commodity demand in China paired with a likely RBA rate cut leaves us negative on the AUD vs. both the USD and NZD.