Asian equities rose early Tuesday, tracking an inspiring lead from Wall Street overnight and as markets awaited the Reserve Bank of Australia’s (RBA) rate decision.
Pressure is mounting for the Australian central bank to follow up with a second 25-basis-point interest rate cut, after taking rates down to an all-time low of 2.25 percent in February, amid plunging iron ore prices – the country’s biggest export.
“It’s a close call. There is a huge misalignment between market and economist expectations, with markets pricing in 80 percent chance of cut but consensus calls for steady rates,” said Kathy Lien, managing director of FX Strategy at BK Asset Management.
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