US ratings agency out with a note post-RBA 4 April
- expects Australian banks to raise interest rates on interest only loans to reduce growth in this sector
- effect of measures will be credit positive because they will curb growth in riskier mortgage loans against rising housing market
- new regulatory measures are credit positive for Australian banks, RMBS and covered bonds
Earlier the RBA left interest rates on hold as expected but AUD dipped as recent data/housing regulations suggests another rate cut is possible still.
AUDUSD on session lows 0.7564 having broken 0.7575-80 support. Large option expiries may provide further support.
