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Doves continue to shake bulls out of AUD longs
RBA cut rates to new historic low of 1.75%
Inflation forecasts were lowered by RBA today in their statement of monetary policy, sending an already troubled Australian Dollar lower across the board.
RBA lowered inflation forecasts across the board
- 2016-dnd CPI forecast lowered to 1-2% From 2-3%
- Mid-2018 CPI forecast lowered to 1.5-2.5% From 2-3%
- 2016 end core CPI forecast to 1-2% From 2-3%
- Mid-2018 core CPI forecast to 1.5-2.5% From 2-3%
GDP forecasts remain unchanged
- End-2016 GDP at 2.5-3.5%
- Mid-2018 GDP at 3-4%
Not that it really matters now but construction PMI broke a 4-month losing streak to expand at its highest since last October. This helped the composite read advance for a fourth consecutive month, the third above 50 and now at its highest since November. Of course larger forces are now at work for the Australian Dollar such as the resurgence of Greenback strength, a dovish RBA and a looming Nonfarm payroll data dump tonight for US and Canada.
RBA pull the floor from under AUD with lower inflation outlook
The RBA sent the Australian Dollar tumbling across the board as the lowered inflation forecasts significantly right through to 2018, whilst highlighting uncertainty for future cost pressure.