The RBA will announce its latest rate decision at 2:30 pm Sydney time and the pendulum seems to be swinging back in favour of the ’25bps rate rise’ club. Ueber-hawk Glenn Stevens will raise rates if domestic issues alone are considered and will only pause if international issues like the China/US/Japan disagreements and the ongoing European debt woes are considered serious enough.
I dislike going into major one-off risk events with sizeable risk in play so I’ve cut my AUD/USD shorts this morning for a very tiny profit and will reassess when markets get back to normal.
Good luck today.
