Australia’s dollar held its longest losing streak in a month as investors bet the central bank will decide to cut interest rates that are already at a record low.
Swaps markets give better than 70 percent odds the Sydney-based Reserve Bank of Australia will lower the cash rate target on Tuesday to 2 percent from 2.25 percent, according to data compiled by Bloomberg. Twenty-five of 29 economists surveyed by Bloomberg also predicted a quarter-point reduction. Traders will be hoping they get lucky this time after betting on rate cuts at each of the previous two policy meetings.
“Our call is for a cut,” said Robert Rennie, global head of currency and commodity strategy in Sydney at Westpac Banking Corp., adding that such a decision may drive the Aussie down more than 2 percent to 76.50 U.S. cents. “The sense is the RBA will need to further downward revise its growth forecasts for next year.”
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015