Summary of comments from SG response to the Reserve Bank of Australia rate cut on Tuesday

  • cumulative easing to 75bp since June
  • RBA reiterated the mantra to ease further if needed even as the committee sees a "gentle turning point" in the economy
  • The outlook for an extended period of low rates and dovish bias implies that rates could be cut again to 0.50% before Christmas

And, adding the AUD/USD

  • we see no upside in being long until the next leg of US-China trade discussions concludes next week