Forex Investment and Currency Trading

Despite AUD/USD hitting post float highs in May, the RBA’s net selling of A$ on market was no more than average, and is actually lower than average.
The RBA sold a net A$336mn in May (from selling A$305mn in April).
One of the reasons for the bullish view on AUD is that market suspects the RBA could [...]

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Australia: Rate Cuts Looming as the Economy Stalls

The RBA remains on track to deliver an interest rate cut during the December quarter. The first move may be a 50bp cut in line with the start of previous easing cycles.
The monetary policy easing cycle is likely to deliver 125 to 175bps of ratr reductions by the [...]

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US dollar weakness
The single most important contributor to AUD strength will be a weaker US economy than is currently priced by the currency and interest rate markets. It is forecasted the ongoing weakness in the US economy as house prices continue to fall; employment contracts sharply; gas and food prices remain high and consumer spending [...]

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