Mar 14, 2013
Forex Flash: RBA rate cut by 25bp within 6 months still viable – TD Securities
Investors got very much surprised with February labor force report pointing to 71.5K added jobs and a higher participation rate. leaving the unemployment rate unchanged at 5.4%. “An unusual report like this one needs to be treated with caution. AUD OIS has almost completely given up pricing another -25bp cut within the next six months. However given our view that Q1 CPI will be rather soft, with underlying inflation hugging the bottom half of the RBA’s target band, we recommend fading this move”, wrote TD Securities analyst Alvin Pontoh.