I think it should be a foregone conclusion that the RBA cuts tomorrow, given what’s happening at the Fed, ECB, BOJ etc and the fall in commodity prices but as we know Mr Stevens is a careful hawk. In fact I think he should probably consider a quick-start 50bps cut to get the AUD back below parity against the USD, but that’s another story.
Today’s retail sales and internet jobs data should strengthen the ‘easing’ case, with both coming in well below expectations.