Add to the equation the fact that the Australian benchmark S&P200 index just hit the 5,000, suggestive of growing confidence in the outlook of the economy one thinks, then we also have China growth picking up, stabilization in Europe, and the result seems to point that the RBA will be comfortable staying pat for longer. Cash rate futures put odds of a cut in March at 41%.
On the flip side, sure there still will be the more pessimist side of the market, betting for cuts in the near term and sticking to the latest statement of the RBA, where further cuts were not discarded, yet as things stand, the latter faces the threat of losing supporters. A break above 1.0350/60 resistance in the AUD/USD will be further indication that the market is shifting its view.
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