Tomorrow’s rate decision is speculated to show us another rate cut. Another 25 basis points would put the AUD at 2.75%, only 25 basis points away from New Zealand’s rate.
The AUD/USD has seen very little volatility in recent months (compared to Yen pairs), but can most definitely be affected by an additional rate cut tomorrow.
Chances of a Rate Cut
“There is more chance of a rate cut on Tuesday than markets are pricing in,” according to Ray Attrill, the co-head of foreign exchange strategy at National Australia Bank.
“After the CPI (Consumer Price Index) numbers (released) in January we thought that tilted the balance in favor of a move in February, having previously anticipated a move in March,” Attrill said, adding: “Our view is that the Australian economy is much weaker than generally understood.” (CNBC)
A rate cut on Tuesday could enforce this weakness and push the AUD even lower against the U.S. Dollar for Forex Trading.
[column size=”1-2″ last=”0″ style=”1″]
[column size=”1-2″ last=”1″ style=”2″]
Latest posts by admin (see all)
- Forex Trading in Summertime, what the charts can tell you. - September 22, 2017
- The Secret of Taking Profit and Why it is Important - September 20, 2017
- Fading the Momentum in Forex Trading - September 14, 2017
Winner’s Edge Trading, as seen on: