AUD/USD: Offered at 200-HMA, Westpac now expects RBA to cut rates 3 times in 2019
|- Aussie dollar offered near key average resistance.
- Westpac calls for third RBA rate cut in November.
AUD/USD has come under pressure this Friday morning in Asia, possibly due to Westpac revising its forecast for RBA rate cuts in 2019 from 2 to 3.
The pair is currently trading at 0.6892, having dropped from the 200-hour moving average (MA) of 0.6905 to 0.6883 in the last few minutes.
Westpac, one of the "Big 4" Australian banks, expects the Reserve Bank of Australia (RBA) to cut the cash rate to 0.75% by November. Earlier this week, the bank moved forward its forecast for rate cuts to June and August from the previous forecast of August and November made on Feb. 21.
As of now, the markets are fully priced in for two rate cuts. With Westpac predicting a third rate cut, the AUD may have a hard time cheering potential risk reset in the financial markets. As of writing, the futures on the S&P 500 index are reporting a 0.30% rise.
The bearish pressures around the AUD would strengthen if other major banks follow Westpac in forecasting three 2019 rate cuts.
Pivot levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.