AUD,NZD/Flows and Orders

Chances of RBA rate cut increase

Australian private sector credit grew by 0.1% in October against expectations of +0.3%. The futures markets are now pricing in an 85% chance of a rate cut on Tuesday. AUD/USD is still holding firm near 1.0420 but dealers are mentioning stop-loss sell orders building below 1.0410.

  1. Good morning Sean,

    Really? Isn’t the Chinese data much more important? If 85% expects a rate cut, the absense of it next week + the long period without any further RBA intervention will make the 1.05/1.06 barriers toast…

  2. Hi Iridium, I should have mentioned that the futures market had already moved significantly before this data, up from 63% yesterday, so this minor data is just icing on cake for those expecting a rate cut. You are right of course, RBA puts much greater weight on international issues over last few meetings

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