RBA in no rush to cut rates – Danske Bank

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Analyst at Danske Bank Minna Kuusisto sees a low probability of the RBA cutting interest rates further in the next months.
Key Quotes
“Global risk-off on one hand, and fear of a Fed hike on the other, have fed USD strength and weighed on AUD”.
“After our previous update, AUD has depreciated more than 3% vs. USD as commodity prices have also dropped. Weaker AUD brings relief to RBA and the central bank could stay sidelined for now”.
“Nevertheless, it is obvious that RBA is less worried about overheating of the housing market than it was before, so should need be, it would not hesitate to cut rates further”.
“The market is pricing 80% probability of a cut during the next 12M – however, only a 30% probability of a cut this year”.