Author: Rhys Miles
As per yesterday’s commentary, an RBA cut appears almost a formality. A no move would be the real shock. Overnight markets continue to react to any further suggestions on tariff impositions or indeed anything to maintain the global growth slowdown story.
There wasn’t much to report however with the Dow finishing flat and the AUD continuing its ever so gradual appreciation or at least maintaining its footing against the USD. The markets are now pricing in an 80% chance of a rate cut from the US Fed in July bringing forward their expectations which as recently as 1 month ago had the earliest cut forecast to be in the last quarter.
Chinese manufacturing data yesterday was slightly better than expected offset overnight though by poor US manufacturing data.
At 2.30pm today the RBA language accompanying the cut (if they do) is paramount. It will be in the short term, the driver of local equities and the AUD.
© Copyright - EncoreFX, 2018.EncoreFX (Australia) Pty Ltd ABN 42 607 244 879 AFSL 479 870 is the issuer of the financial products in Australia. The information on this website has been prepared without taking into account your objectives, financial situation or needs and so before acquiring any financial services or products from EncoreFX, you should consider the appropriateness of the information having regard to your own objectives, financial situation or needs. You should obtain the product disclosure statement (PDS) for the relevant product and consider the PDS before making any decision to acquire the product. The information on this website is not directed at residents of any country other than Australia and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. It is the responsibility of visitors to this website to ascertain the terms of, and comply with, any local law or regulation to which they are subject.