RBA Rate Cut Boosts ASX 200, Challenges AUD, Could Drive Home Buying in Australia

Markets were prepared for whatever shocks the RBA might have in store regarding mortgages, the AUD/USD exchange rate, and the ASX 200 index.

RBA Rate Cut: Bullish for ASX 200, Bearish for AUD?

Quick overview

  • Markets are anticipating the Reserve Bank of Australia's upcoming monetary policy decision, with a 25 basis point rate cut widely expected but potential surprises remain.
  • Australia's labor market is strong, with job growth and rising wages complicating the case for aggressive rate cuts.
  • A repeat rate cut could boost home buying activity, translating to significant monthly savings for borrowers on mortgages.
  • The ASX200 index is poised for a breakout if the RBA adopts a dovish tone, while the AUD/USD faces a critical technical test based on the RBA's decision.

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Markets were prepared for whatever shocks the RBA might have in store regarding mortgages, the AUD/USD exchange rate, and the ASX 200 index.

ABOUT THE AUTHOR See More
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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