Economic data due from Australia … errr, hang on … the Bank of Canada cut rates – RBA next?

There is economic data due from Australia today … its not high priority data, what is much for significant in terms of market chatter is the decision overnight from the Bank of Canada …

• Bank of Canada cuts rates in a shocker

• Full text of the Bank of Canada decision

• Bank of Canada monetary Policy report January 2015 – Oil price drop will be negative for Canadian growth

  Canadian dollar falls to 5 year low after Bank of Canada shocker

• Bank of Canada press conference: Poloz calls rate cut ‘insurance’

The AUD market is now pondering the implications for the next RBA meeting.

Is that a reasonable pondering?

The BOC cited falling terms of trade, low inflation, low oil prices as major factors …. you could almost slip that unchanged into an RBA statement. Oh, and the BOC would like a lower currency (RBA …. ditto). While the low oil price may not be too much of concern for Australia, it does through its impact on LNG, a substitute energy and an important Australian export. Hmmm, just thinking out loud here.

I’ve been saying for a while now that I think a February rate cut from the RBA is off the table.

I still think the same.

But, after the central bank surprises recently…

More here:

• MNI article says if inflation is low the RBA could put a positive spin on a rate cut

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Oh, BTW … here is the data due from Australia today:

Both due at 0000GMT:

• Housing Industry Association (HIA) New Home Sales for November, m/m: prior was +3.0%
• Melbourne Institute Survey of Consumer Inflationary Expectations for January, prior was 3.4%