First bout of bids expected to to be clustered between 1.0377-85 horizontal support, while retake of 1.0416 is needed to extend more gains towards 1.0430/55 sticky resistance.
Beijing, Shanghai new home prices fell below expected. Overall, China March new home prices fell in 46 cities out of 70 in March, according to an official release. Secondly, Aus Treasurer just crossed the wires reminding the market the RBA will have scope to ease rates, although that nothing new after yesterday's
The RBA released the Minutes of the April 2012 Monetary Policy Meeting. Investors, after reading between the lines, sold off the Aussie as the Central Bank reinforces the case for easing policy if inflation outlook moderates, the statement said.
As read in the RBA minutes: "If slower growth in demand could be expected to result in a more moderate inflation outcome, then a case could be made for a further easing of monetary policy.” Eyes will be on 1Q CPI now, which will be evaluated by the board to determine whether or not a rate cut is necessary.
"If the next set of CPI data shows further signs of steady/easing inflation, then we can be pretty sure that the RBA will cut rates at it’s next meeting. They certainly haven’t turned bearish on the economic outlook but they’ve become less bullish and if the CPI data allows them to do so, then they will cut rates by 25bps in my opinion" explains Sean Lee at Forexlive.
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