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14 Aug 2014
AUD heading towards 0.9000? - Rabobank
FXStreet (Guatemala) - Analysts at Rabobank explained that the RBA’s downward revisions to both GDP and CPI inflation forecasts last week make clear the concerns of the central bank.
Key Quotes:
“While the market perceives that the risk of another rate cut is back on the table, fear that this may add further accelerant to house prices will likely ensure that the RBA retain a preferred for a period of steady policy for the time being”.
“Bearing in mind the economic risks we retain our forecasts that AUD/USD could edge down towards 0.90 on a 6 mth view and back towards 0.86 in 12 mths”.
Key Quotes:
“While the market perceives that the risk of another rate cut is back on the table, fear that this may add further accelerant to house prices will likely ensure that the RBA retain a preferred for a period of steady policy for the time being”.
“Bearing in mind the economic risks we retain our forecasts that AUD/USD could edge down towards 0.90 on a 6 mth view and back towards 0.86 in 12 mths”.