February 21st, 2:53 pm by Barbara Zigah
(eToro Blog) Earlier today, the Reserve Bank of Australia released the minutes from its February 7th meeting which showed that the central bank stands ready to consider an interest rate cut if conditions warrant given the inflationary outlook. News of possible additional easing, even perhaps well into the medium term, was enough to knock the Aussie Dollar down from its recent highs after getting initial support from the positive outcome of the Greek debt deal. On the OpenBook, the AUD/USD is trading lower at 1.0671, and a bearish sentiment dominates. Guru pyruss scalped a short position a while ago with a 2.30% return, and expecting a bounce earlier placed two orders to sell the pair at 1.0730 and 1.0705.
Over the past several hours, OpenBook trader sari88 has been monitoring the trading activity closely for all of the commodity-linked currencies, and has been actively scalping hedged positions in the AUD/USD pair. Over the past 4-hours this trader has closed nearly a dozen positions with gains ranging from 2% to 5% but which are miniscule compared to the 52% gain that occurred immediately following the debt deal announcement. This trader, who as of yet has no copiers, allocates nearly 40% of the portfolio the AUD/USD and is on track to post a near 48% profit for the week and a 60% profit for the month.
The probability of a rate cut by next month’s meeting has been pared down to 32% according to one statistician. The RBA expects that growth trends and inflationary targets will be in line with expectations. What could make the difference is the trickle down effect on Australian inflation as a result of China’s recent decision to further ease; the RBA said it is their goal to maintain inflation at between 2% and 3%.
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