Forex: RBA will need to cut rates further - NAB

RBA minutes have been released 3 hours ago, and AUD/USD has been capped below fresh weekly highs at 1.0331, previous Thursday's lows price zone, last at 1.0320. According to NAB: “The RBA notes the persistently high AUD and our analysis suggests that more rate cuts will be required, as well as a pull-back in the AUD, to see growth move back to trend in 2014,” the analysts say, expecting still “three rate cuts ahead.”

“In our view, these Minutes display a degree of anxiety at the RBA,” they expand, “with the rise in the iron ore price not triggering any more investment and no real sign of non-mining investment being rekindled to date,” NAB concludes.