RBA: No rate changes - ANZ
|Martin Whetton, Senior Rates Strategist at ANZ, points out that the RBA’s top brass have sent a clear message to the markets, rates are not moving for the moment and global changes have no implications for local policy.
Key Quotes
“For AUD rates, we expect the curve to remain steep, with a pinned front end; and for cross-market trades to offer some value. We see a flattening of the very short dated IRS curve, which has priced in ‘too much’. Longer rates hinge on the US and Europe, where we expect a modest rise in yields.”
“The pulse of US inflation is a concern and some within the Fed have made the ‘right’ call in pushing back on rate hikes. The FOMC will now probably commence balance sheet reduction in October, but this could put at risk the December hike. The result? A weaker USD, carry continues and other central banks playing down hawkish vibes.”
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.