CIBC on the Australian dollar - may be scope for upside surprises (here's why)
An RBA and AUD snippet from CIBC
Australia posted a disappointing fourth quarter GDP print
- that now has markets pricing in the probability of interest rate cuts by the RBA
- However, the near-certainty that investors have regarding an RBA cut appears at odds with the more modest slowdown in growth the country has seen when compared against Canada
- With so much negative sentiment being priced into the AUD already, there may be scope for upside surprises ahead particularly if the RBA doesn't deliver the rate cuts that markets now expect.
CINC go on to note CAD rate cuts are priced way below those for AUD