Market split 50:50 on RBA decision today

There is a very even split amongst analysts and interest rate traders as to what the RBA will do today. The casting vote from the ‘chairman of RBA watchers’, Terry McCrann, would seem to suggest that they stay on hold this time due primarily to the white-hot property market.

AUD/USD sentiment remains very heavy but consistent corporate bids between .7750/70 are holding it up for now.

The double-risk of RBA and ECB this week has led to short-covering in EUR/AUD, up 0.5% from yesterday morning’s opening levels.