The RBA meeting this afternoon is expected to cut Australian interest rates by 25bps. Some of the domestic data like yesterday’s job ads might lead to some re-consideration, but overall the slowdown in the big Asian economies and the on-going crisis in Europe is likely to hold sway. Inflation is also not an issue at the moment so I expect the RBA to cut by 25bps but perhaps moderate the subsequent language somewhat. The market is expecting such an outcome so dips should be relatively modest. A no-change decision would likely see a re-test of the 1.0800 barrier.
Good luck today.
