Charlie Jamieson from Jamieson Coote Bonds says markets are currently pricing in an 80% chance of a further rate cut from the RBA. In this view there are likely to be at least another two cuts this year - in May and then August. Jamieson says that while the AUD has traded lower against the USD, it has remained remarkably resilient against a weighted index of Australia’s major trading partners. Japan and the Eurozone have been actively devaluing their currencies via QE programmes. The result is that the AUD has actually remained quite resilient at around 70cents. In this video Jamieson explains why he thinks the RBA will have to do more heavy lifting and is likely to use multiple rate cuts to move the currency lower.
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