FXstreet.com (Barcelona) - AUD/USD has lost 0.9% since the close Thursday, and, as it trades around 1.0425 just a couple of hours ahead of the closing bell, is set to record a 1.2% loss for the week.
The bear pressure on Aussie is due to a Treasury report that suggests a strong AUD will inspire RBA interest rate cuts, and the central bank has full authority to do so, according to Camilla Sutton, CFA, CMT, Chief Currency Strategist at Scotiabank.
“At the end of July the market was pricing in 100bpts of easing over the next 12‐months; this has been scaled back to just 50bpts now,” Ms. Sutton says. “We feel this is still too aggressive, expecting only one interest cut.”
The bear pressure on Aussie is due to a Treasury report that suggests a strong AUD will inspire RBA interest rate cuts, and the central bank has full authority to do so, according to Camilla Sutton, CFA, CMT, Chief Currency Strategist at Scotiabank.
“At the end of July the market was pricing in 100bpts of easing over the next 12‐months; this has been scaled back to just 50bpts now,” Ms. Sutton says. “We feel this is still too aggressive, expecting only one interest cut.”
