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1 Feb 2016
AUD/USD in focus on RBA week - Scotiabank
FXStreet (Guatemala) - Analysts at Scotiabank explained that AUD is soft having weakened into the release of softer PMI data from China.
Key Quotes:
"AUD’s subsequent stabilization hints to moderate relief despite the drop in China’s manufacturing measure to a fresh multi-year low of 49.4.
The RBA policy decision is the primary near term risk for AUD, with expectations of a hold at 2.00%.
Only one of 29 Bloomberg survey respondents is looking to a cut at this meeting, however we note that OIS are pricing a roughly 80% chance of a 25bpt cut over the next 12 months. Recent inflation data have served to reduce expectations for easing."
Key Quotes:
"AUD’s subsequent stabilization hints to moderate relief despite the drop in China’s manufacturing measure to a fresh multi-year low of 49.4.
The RBA policy decision is the primary near term risk for AUD, with expectations of a hold at 2.00%.
Only one of 29 Bloomberg survey respondents is looking to a cut at this meeting, however we note that OIS are pricing a roughly 80% chance of a 25bpt cut over the next 12 months. Recent inflation data have served to reduce expectations for easing."