While many economists think that the Australian interest rate will stay at 2.75%, there are some who think we’ll see a rate cut early Tuesday morning.
RBA (Reserve Bank of Australia) Governor Glenn Stevens has hinted at a cut and ForexFactory is also projecting a rate cut on their forecast, 25 basis points to 2.50%.
2.50% is an extremely physiologically significant rate for Australia to hit because it will remove their title of the country with the highest interest rates. At 2.50%, they will be tied with New Zealand and volatility can and should be expected.
The AUD is hitting three-year-lows against the USD. Investors, strap on your seat-belts, tomorrow has the potential of being a bumpy ride.
Until next time, for news updates and more fundamental analysis, you can follow me on Twitter. Follow the Winner’s Edge account, Casey’s twitter account, Nathan’s twitter account, and Tim’s twitter account too for Forex analysis, and trade ideas!
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