HALISTER1: RBA Statement Somewhat Hawkish, No Easing Guidance: Citigroup

RBA Statement Somewhat Hawkish, No Easing Guidance: Citigroup

(Bloomberg) -- Much of RBA’s statement today is a reproduction of the July comments, with no mention of further easing guidance, Citigroup analysts write in note.
  • RBA appears to be sanguine about the housing market
  • “We wouldn’t be surprised if AUD ended up higher following the RBA’s interest rate cut,” Todd Elmer, Singapore-based strategist at Citigroup writes in note
    • AUD had already seen downward pressure ahead of RBA
    • Today’s move doesn’t do much to diminish AUD’s attractiveness in relation to its lower-yielding, lower- credit-quality and higher-political-risk peers
    • Investors may treat the slight dip as providing an opportunity to build longs
  • AUD/USD reverses earlier losses to trade up 0.2% to 0.7548 after hitting session low at 0.7491 on RBA rate cut announcement
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Todd Elmer (Citigroup Inc)

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