Here is what the AUD needs to do to prompt an RBA rate cut
I posted a preview of the Reserve Bank of Australia meeting today (Tuesday 2 July 2019) here earlier:
And, these from even earlier:
- RBA monetary policy decision due July 2 2019 - preview (most expect a rate cut)
- RBA likely to deliver second cut today - BAML
- RBA is likely to be hesitant ... at this 'early' stage of global central bank easing
- we don't think that the RBA is prepared for a zero interest rate policy (ZIRP), let alone the quantitative easing (QE) that some market participants have begun to discuss
- an AUD rally above 0.70 would increase the chances of a rate cut given the RBA's close attention to the currency market.
- However, we believe that the market has gone too far in its expectation of RBA easing.
Bolding above is mine. AUD/USD did pop 0.7 yesterday bt it did not sustain and has since reversed. Let's see if that lasts.