Quay Mid-Day Market Update

The Australian Share market has opened the session with a big bounce, with expectations of an interest rate cut this afternoon combined with a positive Wall Street lead and a rally in Iron Ore to see local stocks outperform. Market Turnover into lunch was strong at $1.820 billion with all attention on the RBA at 2:30 AEDT in one of the most anticipated rates decisions in recent time. Given the struggle for any substantial growth and an economy struggling to rebalance away from the resource sector we did expect a cut in either May or June. A hold was probably in favor given the Federal budget isn’t until Mid-May, however I think the currency moves last week where the AUD broke 80 U.S cents and still hovering around 78.5 U.S cents may be enough to see the RBA cut rates, as it continues to seek a move towards 75 U.S cents to increase the competitiveness of our local exporters. Quay Equities believes we will see an interest rate cut this afternoon. For the entire wrap please visit (VIEW LINK)