AUD/USD to edge down towards 0.65 on a 12-month view - Rabobank
|According to analysts at Rabobank, the chances that the RBA will cut the cash rate again from its present level of 0.75% are high and such move would begin to shift the risk of QE into the sightline.
Key quotes
"Governor Lowe has been very candid about the type of unconventional monetary policy that the RBA could use if the 0.25% threshold in the cash rate were reached."
"The low level of wage inflation in Australia will be a contributing factor in household incomes. According to the OECD, Australian real household disposable income fell -0.1% q/q, -0.8% y/y in Q1 2019, which puts it to the back of the field of OECD countries. "
"The low level of enterprise bargaining agreements, a broad-based decline of employees being promoted and an increase of labour supply stemming from a much higher participation of women and older workers in the labour pool were all cited as contributing factors."
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.