The RBA rate cut may be fully factored in but it doesn’t mean the event isn’t going to be big.
For most traders the fact the rate cut is fully factored means they are turning their backs on the opportunity. But for the professionals there’s a lot more to it.
The “Statement” is the key. Will the RBA signal further rate cuts or hold off for now? That’s the question and the answer to the next major move in the AUD.
If the RBA cut rates…the AUD will hardly move. If they don’t, it will be 100 points higher in 5 seconds.It all comes down to the statement.
We want to know if they are still considering cutting rates further. If this line is still in, then consider it as another cut coming next month. If it’s out, then the currency may in fact rally.
Unemployment data on Thursday will be huge as it’s the first piece of the puzzle following the Rate decision. We just had weak Retail Sales so another big weak number and another cut next month will be a forgone conclusion anyway regardless of what the statement says today.
Big day really….. So watch the statement! Good Luck.
For most traders the fact the rate cut is fully factored means they are turning their backs on the opportunity. But for the professionals there’s a lot more to it.
The “Statement” is the key. Will the RBA signal further rate cuts or hold off for now? That’s the question and the answer to the next major move in the AUD.
If the RBA cut rates…the AUD will hardly move. If they don’t, it will be 100 points higher in 5 seconds.It all comes down to the statement.
We want to know if they are still considering cutting rates further. If this line is still in, then consider it as another cut coming next month. If it’s out, then the currency may in fact rally.
Unemployment data on Thursday will be huge as it’s the first piece of the puzzle following the Rate decision. We just had weak Retail Sales so another big weak number and another cut next month will be a forgone conclusion anyway regardless of what the statement says today.
Big day really….. So watch the statement! Good Luck.
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