2 Dec 2014
Key events coming up - Rabobank
FXStreet (Guatemala) - Analysts at Rabobank explained that today we have the RBA rate decision and other key events ahead.
Key Quotes:
“There’s still no expectation of them doing anything, and the continued grind lower in AUD may leave them feeling they can again talk the talk without walking the walk”.
However, with regional growth momentum fading and (yesterday aside) energy and iron ore prices plunging, there may be recognition of further downside risks”.
“Yet, that will require macro-prudential measures on housing to deal with investors like Satyajit Deb (mentioned in a Bloomberg story today) who already owns five Aussie houses and plans to buy more even as rental yields fall as he believes “History shows property will roughly double every seven to 10 years”. As others have noted before me, the one thing we can learn from history is that people don’t learn from history”.
“From the RBA we move to the RBI, which will secretly be cheering the fall in oil. There’s no expectation of a rate cut there either today, but we are looking for suggestions as to when that might occur given that inflation pressures are easing and economic reforms are continuously being rolled out. (Notably INR pushed back towards the psychological 62 level yesterday.)”
“We have Fischer speaking at a panel in Washington; Yellen giving welcoming remarks to students (presumably something more substantial than “Hello students”); Brainard talking about the “reduction of paperwork” (?); and the ECB’s Visco on the challenges for the Euro area (hopefully he has a decent time-slot for that topic; and German and French Fin Mins and Central Bankers will be asking the same questions in a meeting earlier in the day)”.
“Apart from that it is going to be a case of watching to see if oil can really bounce: any time I’ve spilled it, the answer has been ‘no’.”
Key Quotes:
“There’s still no expectation of them doing anything, and the continued grind lower in AUD may leave them feeling they can again talk the talk without walking the walk”.
However, with regional growth momentum fading and (yesterday aside) energy and iron ore prices plunging, there may be recognition of further downside risks”.
“Yet, that will require macro-prudential measures on housing to deal with investors like Satyajit Deb (mentioned in a Bloomberg story today) who already owns five Aussie houses and plans to buy more even as rental yields fall as he believes “History shows property will roughly double every seven to 10 years”. As others have noted before me, the one thing we can learn from history is that people don’t learn from history”.
“From the RBA we move to the RBI, which will secretly be cheering the fall in oil. There’s no expectation of a rate cut there either today, but we are looking for suggestions as to when that might occur given that inflation pressures are easing and economic reforms are continuously being rolled out. (Notably INR pushed back towards the psychological 62 level yesterday.)”
“We have Fischer speaking at a panel in Washington; Yellen giving welcoming remarks to students (presumably something more substantial than “Hello students”); Brainard talking about the “reduction of paperwork” (?); and the ECB’s Visco on the challenges for the Euro area (hopefully he has a decent time-slot for that topic; and German and French Fin Mins and Central Bankers will be asking the same questions in a meeting earlier in the day)”.
“Apart from that it is going to be a case of watching to see if oil can really bounce: any time I’ve spilled it, the answer has been ‘no’.”