Forex Flash: RBA cut over 80% chance; AUD/USD scenarios - NAB
Forex pairs in this Article » AUD/USD
FXstreet.com (Barcelona) - Despite pricing over a potential RBA rate cut tomorrow has gone up significantly - from 50s to +80% chance - the Aussie has had a limited fall. Does this mean a bigger fall may hit the currency should the RBA deliver a 25bp cut, strategists at NAB question... From NAB daily morning report: "Assuming we are to get a cut, we suspect FX reaction may well depend on whether or not the RBA indicates a continuing easing bias in the post meeting statement." If the RBA fails to show much of a dovish stance, NAB doubts "the AUDUSD will fall very much on the day, if at all." In the scenario that the RBA holds fire, it suggests "we shoot straight up above 1.0490 November high and onto 1.05, whereupon we suspect pent up exporter demand will carry us higher still" the banks notes.