RBA will cut by 25bps next week, maybe even 50bps

Australian rates are at 3% in a world where the ECB is considering negative rates and whilst US rates might rise, it probably won’t happen in this decade! Commodity prices are falling, China is consolidating and the AUD is way too high and killing important industries like tourism.

The RBA needs to cut rates and cut them fast and if they have any market nous, they should cut by 50bps next week, drive the AUD/USD back towards 1.0000.