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  • Aussie dollar offered near key average resistance.
  • Westpac calls for third RBA rate cut in November.

AUD/USD has come under pressure this Friday morning in Asia, possibly due to Westpac revising its forecast for RBA rate cuts in 2019 from 2 to 3.

The pair is currently trading at 0.6892, having dropped from the 200-hour moving average (MA) of 0.6905 to 0.6883 in the last few minutes.

Westpac, one of the “Big 4” Australian banks, expects the Reserve Bank of Australia (RBA) to cut the cash rate to 0.75%  by November. Earlier this week, the bank moved forward its forecast for rate cuts to June and August from the previous forecast of August and November made on Feb. 21.

As of now, the markets are fully priced in for two rate cuts. With Westpac predicting a third rate cut, the AUD may have a hard time cheering potential risk reset in the financial markets. As of writing, the futures on the S&P 500 index are reporting a 0.30% rise.

The bearish pressures around the AUD would strengthen if other major banks follow Westpac in forecasting three 2019 rate cuts.

Pivot levels