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Rate slips to new lows on the day as.........>

AUSSIE
AUSSIE: Rate slips to new lows on the day as markets take out perceived support
at the $0.6861 Friday low. A close at current levels would be the lowest since
2009. Moves come as markets continue to eye AUD downside and the likelihood of
extended RBA easing cycle. UBS this morning already recommended selling the AUD.
cutting their year-end forecast to $0.66.
- On the RBA, the market is pricing 40bps of cuts into November. Next month's
meeting, however, feels somewhat aggressively priced, at approx. 50%, with
back-to-back cuts unlikely.
- Next Australian Rate decision is due on 02/07. Market implied rates sees next
cut within 3 Months. BUT, unchanged at 1.25% next meeting, with 22 out of the 24
economists surveyed going for the latter.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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