FXStreet (Guatemala) – Sean Callow, analyst at Westpac Banking Corporation explained that there is no tension over the RBA’s decision on the cash rate, keeping it at 2% where it has been since May (2:30pm Syd/11:30am Sing/HK).
Key Quotes:
“As always, the statement will be scrutinized but judging by Governor Stevens’ speech last week, there will be no downgrading of November’s optimism: “the prospects for an improvement in economic conditions had firmed a little over recent months.” We will however keep an eye on the AUD commentary.”
“In August the RBA dropped its reference to further AUD depreciation being “both likely and necessary”, switching to the neutral view that AUD “is adjusting to the significant declines in key commodity prices.” Given further decline in these prices over the past month, last week’s 3 month high in AUD TWI could be enough for a tweak of this language, which should prompt some AUD selling, albeit probably not dramatic, given the rest of the statement.”
(Market News Provided by FXstreet)