Intraday Market Thoughts

Archived IMT (2008.11.04)

by Ashraf Laidi
Nov 4, 2008 3:37

RBA surprises with a bigger than expected 75-bps cut to 5.25%, dragging the Aussie lower across the board as well as damaging other higher yielding currencies such as GBP, NZD, EUR and CAD against USD and JPY. Aussie damage is accelerated by the RBA language which opened the way for further rate cuts. 200-bps cut have been delivered since the beginning of the rate cuts. USDJPY is also falling, manifesting signs of rising risk aversion as markets conclude RBA "knows something the markets dont" with the bigger than expected cut. AUDUSD eyes 0.66 while GBPUSD taking deepened beating eyeing $1.56 as 75-bps cut seen this Thursday.


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