4 Aug 2015
RBA: no more easing for the time being – BTMU
FXStreet (Edinburgh) - Strategist Kit Juckes at Societe Generale reviewed the recent decision of the RBA to leave its monetary policy unchanged.
Key Quotes
“This morning’s statement, when rates were also left at 2%, comments only that “The Australian dollar is adjusting to the significant declines in key commodity prices”.
“There’s nothing to prevent the references to the currency from returning in future meetings but for now, the RBA is no longer talking the currency lower”.
“Again, with Fed/RBA policy set to diverge further in the months ahead, and with the AUD still vulnerable to adverse shocks from the Chinese economy or from global commodity markets, I wouldn’t rush out to declare the 4-year downtrend in AUD/USD over, but it’s not the most attractive short looking forwards”.
Key Quotes
“This morning’s statement, when rates were also left at 2%, comments only that “The Australian dollar is adjusting to the significant declines in key commodity prices”.
“There’s nothing to prevent the references to the currency from returning in future meetings but for now, the RBA is no longer talking the currency lower”.
“Again, with Fed/RBA policy set to diverge further in the months ahead, and with the AUD still vulnerable to adverse shocks from the Chinese economy or from global commodity markets, I wouldn’t rush out to declare the 4-year downtrend in AUD/USD over, but it’s not the most attractive short looking forwards”.