The RBA proved yet again to be one of more predictable G-10 Central Banks offering up standard fare of no rate cut with no serious attempt to adjust forward guidance. Given the growing ASX momentum lifted by gains in local miners on the back of surging commodity prices, the Aussie dollar bears may be better-served waiting for Fridays Statement of Monterey Policy. And specifically, the RBA’s possibly revamped CPI projections given the tepid Q3 CPI data, which continues to track below the lower end of the RBA’s 2-3 % inflation band. But to be honest anything other than the glass half full approach from the RBA would be a surprise at this stage.
The Aussie initially moved higher because some thought the RBA would tack dovish, so bearish bets unwound
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Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.