Prashant Newnaha, senior Asia-Pacific rates strategist at TD Securities, points out that the RBA cut the cash rate today to a record low of 1% and is the first time it has cut the cash rate in consecutive meetings since 2012.

Key Quotes

“On balance this is a dovish statement compared to neutral toned statements when the Bank has cut the cash rate in the past.”

“The Bank essentially kept the last paragraph from its June statement, but made a small tweak indicating it could adjust monetary policy 'if needed'. This suggests the RBA is willing to cut the cash rate further.”

“With 2 cuts delivered as per the Bank's forecasts and no major changes to the Bank's medium term GDP or CPI forecasts, it does suggest the Bank can buy itself time and move to the sidelines.”

“Our current RBA cash rate profile assumes the Bank moves to the sidelines, with a deterioration in the labour market bringing the Bank back in play, cutting again in Nov.”

“The clear risk is for the Bank to cut earlier than we forecast.”

“While we don't anticipate an August cut, it cannot be ruled out.”

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.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD retains gains near the 1.2000 threshold

The EUR/USD pair advanced for a third consecutive day, holding near a daily high at 1.1986. Dollar bears leading the way higher ahead of US Retail Sales, employment data.

EUR/USD News

GBP/USD holds on to daily highs near 1.3800

The broad dollar’s weakness helps GBP/USD recover some ground, although the pound is among the worst performers. Britain's successful vaccination campaign supports sterling.

GBP/USD News

BTC, ETH, and XRP stall at significant Fibonacci levels

A more stable trading experience will permit investors to hedge their bets on the future proliferation of cryptocurrencies with a well-placed company that will earn trading revenues that are not directly impacted by the price swings of any one token.

Read more

XAU/USD drops below $1,740 despite USD selloff

After edging higher to $1,750 area earlier in the day, the XAU/USD pair lost its traction during the American session and was last seen trading at $1,735, losing 0.45% on a daily basis. 

Gold News

Coinbase (COIN) opens at $381 per share, 52.4% above reference valuation

Coinbase (COIN) Global Inc's stock opened at $381, 52.4% above the reference price of $250, in the highly-anticipated Nasdaq debut on Wednesday. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures