AUD,NZD

Chinese data puts another nail in Australian rate-cut coffin

If the RBA isn’t worried about the level of the AUD, and they obviously aren’t based on their last meeting, then the chances of a rate cut next month are receding at a great rate. Very strong retail sales and industrial production data out of China when coupled with yesterday’s strong Australian jobs data, would seem to be taking away any chance of a 25 bps rate cut in December.

The AUD has bounced across the board this afternoon and with overall positioning at close to neutral levels, there is plenty of scope for positions to be built in either direction.

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