The aussie is weaker as RBA rate cut bets start to grow
Australian cash rate futures are now pricing in a ~54% probability of the RBA cutting rates by 25 bps next month - up from ~38% in late December - and that is weighing on the aussie as we look towards the start of European trading.
The dollar is holding slightly firmer across the board but just be mindful that we have Eurozone retail sales and CPI data to navigate through, so that may yet help give the euro a lift and spoil the dollar's steady footing to start the day.
All in all, besides the aussie, the relative range of other major currencies in trading are relatively narrow as markets are keeping more clam since overnight trading.
US-Iran tensions continue to stir the pot but fears are beginning to subside as bonds are seen to be more steady while European stocks look set to rebound from losses yesterday.
In general, market participants are starting to fade the fear but just be wary that further negative developments in the Middle East could see sentiment quickly reverse back.
