- AUD/USD firming up as Dollar slides and takes up as the weakest currency on the board.
- RBA is in a position to cut rates, its just a question of timing.
AUD/USD is currently trading at 0.6866, pretty much flat on the day having travelled between 0.6830 and 0.6869, +0.03% while the dollar has now taken over the weakest slot of the majors in trading for the day. Markets are in a state of flux and we are seeing that reflected in the price action in the spot FX space. There is no consistency in trend one way or the other - even USD/NOK and USD/CAD struggle to make a run of it to the downside as the price of WTI sinks back below 60 the figure. We are waiting to hear a statement from the Saudi oil minister, expected any time soon.
RBA getting set for a rate cut
Meanwhile, the minutes of the Reserve Bank Board’s September meeting contained very little new for markets to go on but did come across a touch more dovish than expected which weighed on the Aussie - Indeed, it sounds as though the central bank is getting closer to its next move on policy. The minutes warned, “developments in the international and domestic economies, including the labour market” will be assessed to see whether a further easing of policy is “needed”, Westpac explained said. The analysts said they continue to predict cuts in the cash rate of 25 basis points in both October and February next year.
Analysts at TD Securities, however, argued that the RBA would be clearly disappointed that following 2 rate cuts and tax cuts, we have not seen more signs of green shoots. "We stick to our Nov call for the RBA to cut but if we get a poor jobs print on Thurs, then a move next month should be more a 50/50 proposition, not ~30% as it is currently. The fact that the RBA removed 'the accumulation of additional evidence' suggests the bar to cutting may have been lowered."
AUD/USD 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD drops below 1.0800 after German Retail Sales data
EUR/USD has come under fresh selling pressure and trades below 1.0800 after the data from Germany showed that Retail Sales declined by 1.9% MoM in February. Resurgent US Dollar demand is adding to the downside in the pair. US data are next in focus.
GBP/USD stays weak near 1.2600 amid market caution
GBP/USD remains defensive near 1.2600 in European trading on Thursday. The hawkish tone from Fed Governor Christopher Waller keeps the US Dollar afloat amid a cautious trading environment ahead of key US data releases and the Good Friday trading lull.
Gold price bulls keenly await US PCE Price Index on Friday before placing fresh bets
Gold price (XAU/USD) continues with its struggle to make it through the $2,200 mark on Thursday and oscillates in a narrow trading band through the early part of the European session.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
The other terminal rate: How far will policy rates be cut?
Recent communication by the Federal Reserve and the ECB has made it clear that the first cut in official interest rates is coming. Both central banks are saying the same but the ECB communication is more opaque than that of the Fed.