Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Friday, 30 January 2015

Dollar sliding further on rates expectations

Well done if you steadfastly stayed short the Aussie dollar - you have been making some serious returns!

As the market increasingly expects interest rates to fall in the first half of this year, the Aussie has now fallen to only 77.8 cents.

That's a dramatic move in only the past two weeks from well above 82 cents.

The Reserve Bank Board meets next on February 3.

Whether or not interest rates are cut at the February Board Meeting, we can expect to see a change of intentions in the wording of the Monetary Policy Decision.

Previously there was reference to a likely "period of stability" being the most prudent course of action.

At the very least that line will surely be dropped next week.