3 Feb 2015
RBA joins the central bank parade – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team shares that RBA has joined the central bank chorus of easing policy by slicing 25bps off its rates, and further add that there exists possibility of another rate cut in Q2.
Key Quotes
“The Reserve Bank of Australia joined the chorus of central banks to ease policy. The 25 bp rate cut was not a major surprise but it did catch many a bit off-guard as recent data and the pace of the Australian dollar's decline had prompted many to push out the expectation to next month.”
“More details will be in the monetary policy review at the end of the week, but today's rate cut is unlikely to be the last. There is scope for another rate cut in Q2.”
“The Aussie was quickly marked down by 1.5 cents to $0.7650 and recorded the session low near $0.7625 a couple of hours later. It has found a better bid in the European morning. The $0.7700 area may cap initial upticks.”
“The Aussie's drop dragged down the New Zealand dollar almost as much. The Kiwi fell through $0.7200 late in the Asian session and is straddling that area in the European morning. The $0.7220-$0.7740 area looks like the proximate ceiling.”
Key Quotes
“The Reserve Bank of Australia joined the chorus of central banks to ease policy. The 25 bp rate cut was not a major surprise but it did catch many a bit off-guard as recent data and the pace of the Australian dollar's decline had prompted many to push out the expectation to next month.”
“More details will be in the monetary policy review at the end of the week, but today's rate cut is unlikely to be the last. There is scope for another rate cut in Q2.”
“The Aussie was quickly marked down by 1.5 cents to $0.7650 and recorded the session low near $0.7625 a couple of hours later. It has found a better bid in the European morning. The $0.7700 area may cap initial upticks.”
“The Aussie's drop dragged down the New Zealand dollar almost as much. The Kiwi fell through $0.7200 late in the Asian session and is straddling that area in the European morning. The $0.7220-$0.7740 area looks like the proximate ceiling.”