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RBA ready to cut rates if neccessary

Thursday, Nov 05 2015
Aussie was initially pushed lower this morning after Australia’s central bank Governor Glenn Stevens said accommodative monetary policy is likely to be appropriate “for some time yet”, while adding the macroeconomic impact of recent mortgage rate increases by major banks “may not be large.” “It seems likely that an accommodative stance will be appropriate for some time yet,” Stevens said in the address Thursday. 
 
“Were a change to monetary policy to be required in the near term, it would almost certainly be an easing, not a tightening. Certainly the rate of CPI inflation wouldn’t be an impediment to that if we thought it was useful to do it. “ Traders interpreted Stevens’ speech to mean the RBA is likely to cut interest rates two times within the next year. Traders are pricing in a 25 percent chance of a rate cut in December, rising to a more than 60 percent chance in February.
 
Aussie  is currently being traded around 0.7150 level. Pair is likely to find support around 0.7152 area and resistance above 0.7180 level. Later today, in the US session, Unemployment Claims figures are scheduled for a release.
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