Yesterday’s CPI confirmed that the RBA will cut rates by 25bps next week and now the market will be listening closely to the subsequent statement for clues as to further actions. Interbank dealers got it 100% correct yesterday when they said that Sovereign buyers would slow down or halt any sell-offs and it’s now likely that we see some choppy trade in a 200 pip range ahead of the decision next Tuesday.
Stop-loss buy orders are reported above 1.0335/40 with sell orders at 1.0380.
