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26 Mar 2013
Forex Flash: RBA action reserved for June – Westpac
FXstreet.com (Barcelona) - The yield pickup offered on AUD over JPY in the 2-year area has ticked higher in recent weeks, but of course remains well below the premium typically associated with AUD/JPY in the high 90s. Japanese investors have not ignored this however – January 2013 saw AUD 5.2B of net sales of AUD bonds, the largest monthly sales in the Ministry of Finance’s series dating to 2005.
The sharp reduction in RBA rate cut pricing over the past month kicked off with the better than expected CAPEX survey and extended on the RBA statement and retail sales bounce. According to Sean Callow, a Global FX Strategist at Westpac, “The market is now pricing a 2.82% low for the cash rate, not far from Westpac’s 2.75% baseline. However, we see the next move coming in June rather than Q4.”
The sharp reduction in RBA rate cut pricing over the past month kicked off with the better than expected CAPEX survey and extended on the RBA statement and retail sales bounce. According to Sean Callow, a Global FX Strategist at Westpac, “The market is now pricing a 2.82% low for the cash rate, not far from Westpac’s 2.75% baseline. However, we see the next move coming in June rather than Q4.”