3 Dec 2013
Flash: RBA uncomfortable – TDS
FXstreet.com (London) - Strategists at TD Securities noted that the RBA left its cash rate unchanged at 2.5% as widely expected and the communiqué was word for word identical to November.
Key Quotes:
“At current levels of $US0.91, the RBA still reckons this level to be ‘uncomfortably high’”.
“The RBA Board appears to prefer the AUD to be below $US0.90, but in our view is unlikely to actually do anything material to get it there. Instead, the RBA is likely to leave the Fed to do the heavy lifting on the currency with tapering expected to strengthen the USD next year”.
Key Quotes:
“At current levels of $US0.91, the RBA still reckons this level to be ‘uncomfortably high’”.
“The RBA Board appears to prefer the AUD to be below $US0.90, but in our view is unlikely to actually do anything material to get it there. Instead, the RBA is likely to leave the Fed to do the heavy lifting on the currency with tapering expected to strengthen the USD next year”.