Forex Flash: RBA would cut rates twice in the next 12 months – Danske Bank

FXstreet.com (Barcelona) - The Aussie dollar is partially recovering earlier losses, after poor domestic employment figures dragged the AUD below the key support at 1.0500; recall that the jobless rate in Australia up ticked to 5.4% during December, and the change in the employment fell by 5.5K after rising by 17.1K in the previous month.

“Employment was down 5.5K in December… At the same time, “other foreign exchange transactions” – a measure of central-bank intervention - conducted by the RBA declined markedly… The drop comes after the RBA seemingly stepped up intervention to curb AUD strength over the autumn and hints that the RBA is not looking to go further down the intervention route to stimulate the non-mining sector. This leaves the cash target rate as the main tool and we look for the RBA to deliver at least two more 25bp cuts on a 12M horizon”, assessed C.Tuxen, Senior Analyst at Danske Bank.

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 securities. 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 Forex 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.

RELATED TOPICS