15 Oct 2013
Flash: AUD/USD has limited downside ahead of RBA minutes - Westpac
FXstreet.com (Barcelona) - The minutes from the RBA’s Oct Board meeting are due at 00:30GMT, and according to Sean Callow, FX Strategist at Westpac, there should be limited downside on the AUD/USD.
Key Quotes
"Recall that the Sep statement was neutral but the minutes included a view that the Board would not “close off the possibility of reducing rates further”. So the neutral Oct statement might not be backed by a neutral tone in the minutes."
"The RBA seems likely to remain comfortably on hold into year end but it will be worth watching whether the minutes remove the suggestion of another easing. If so, AUD should squeeze higher, presumably testing the late Sep highs around 0.9525/30."
"There should be limited downside on retention of the mild easing bias, perhaps 20 pips at most given likely optimism in other parts of the minutes. Ahead of the release, the low in the cash rate is seen at 2.40% in Feb 2014."
Key Quotes
"Recall that the Sep statement was neutral but the minutes included a view that the Board would not “close off the possibility of reducing rates further”. So the neutral Oct statement might not be backed by a neutral tone in the minutes."
"The RBA seems likely to remain comfortably on hold into year end but it will be worth watching whether the minutes remove the suggestion of another easing. If so, AUD should squeeze higher, presumably testing the late Sep highs around 0.9525/30."
"There should be limited downside on retention of the mild easing bias, perhaps 20 pips at most given likely optimism in other parts of the minutes. Ahead of the release, the low in the cash rate is seen at 2.40% in Feb 2014."