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5 May 2015
RBA cuts rates to record low – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team comments on the key developments in the Australian market – RBA rate decision to cut rates to 2%, a record low, and the Australian trade data release.
Key Quotes
“Reserve Bank of Australia cuts interest rates by 25bps in line with expectations to a new record low of 2.00%.”
“RBA cited stronger growth in employment in the past 6 months, further depreciation of AUD seems likely and necessary and inflation to be consistent with target in next 1- 2 years.”
“AUD/USD initially fell about 54pips testing $0.7790 before bouncing back towards $0.7910 while S&P/ASX erased earlier gain. 3-year and 10-year bond yields both move higher post decision.”
“Moreover, Citigroup noted earlier that RBA has called for preferred AUD/USD exchange rate around $0.75 as latest runup supports the case for a cut today.”
“Australia's trade balance has stayed in deficit of $1.3B signaling 12th consecutive trade deficit. Exports data declined first time in 7 months. Looking into commodity components, iron ore and crude oil exports both lower than prior month.”
Key Quotes
“Reserve Bank of Australia cuts interest rates by 25bps in line with expectations to a new record low of 2.00%.”
“RBA cited stronger growth in employment in the past 6 months, further depreciation of AUD seems likely and necessary and inflation to be consistent with target in next 1- 2 years.”
“AUD/USD initially fell about 54pips testing $0.7790 before bouncing back towards $0.7910 while S&P/ASX erased earlier gain. 3-year and 10-year bond yields both move higher post decision.”
“Moreover, Citigroup noted earlier that RBA has called for preferred AUD/USD exchange rate around $0.75 as latest runup supports the case for a cut today.”
“Australia's trade balance has stayed in deficit of $1.3B signaling 12th consecutive trade deficit. Exports data declined first time in 7 months. Looking into commodity components, iron ore and crude oil exports both lower than prior month.”