Asia FX Handover - RBA Signals A June Cut
|- In a speech today Governor Lowe said the RBA are considering cutting rates at their June meeting. Wage growth is too slow to be consistent with their inflation target and lower rates would support employment and help lift inflation toward target. Earlier in the session TheRBA minutes reiterated a case to cut rates, although it was Lowe’s comments which sent AUD lower.
- APRA announced they’re reviewing the 7.25% ‘loan buffer’ currently required for Australian loan applications, a move which could see lending rise to help support the falling housing market.
- Earlier, Fed Powell said he only sees 'moderate risks' to financial system from high levels of business borrowing. However, business debt at historic levels should cause businesses and investors to 'pause and reflect'.
- GBP and USD are the strongest majors, AUD is broadly weaker after losing the most ground against the Canadian dollar and British pound. Led by China, Asian equities were mostly higher despite a weak lead from Wall Street. Japanese shares are in the red.
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