Reducing official interest rates

[eric2011]

It is suggested that the RBA may reduce the official bank interest rates when it meets this coming Tuesday. To the brains trust out there, does anyone have any idea what, if anything, it will do to the US$ which is currently floating around .76cents.

In other words should I purchase some US$'s now or leave it to after Tuesday ?. Thanks

 

[Mattg]

Generally a reduction in the official cash rate would cause a depreciation for AUD. However, speculation of a decrease can also have the same effect.

I would probably purchase now. Although, you may find that if there is an expectation of a decrease in interest rates, but the RBA doesn't increase rates after all, the rate could improve slightly on Tuesday.

It's all a bit of a risk...

 

[Buzzard]

I have no idea what it would do to the exchange rate but at $0.76 I would buy now.
Even if the rate goes to $0.77 it is only $10 for every $1,000, hardly worth worrying about IMHO.

 

[Deleted member 29185]

I thought I heard some guru (just in the last few days) state that the rate seemed to heading toward US$0.80. I've no idea whether there's any substance in it though!

 

[NoName]

As of yesterday markets were pricing in a 58% chance of a reduction to 1.75% at the meeting on Tuesday.

ASX RBA Rate Indicator - ASX

 

[codash1099]

I thought I heard some guru (just in the last few days) state that the rate seemed to heading toward US$0.80. I've no idea whether there's any substance in it though!

and I'll bet I could find one who says it's headed in the opposite direction.