Morgan Stanley expects the Reserve Bank of Australia (RBA) to stand pat next Tuesday and cut rates by 25 basis points in November.
The investment bank is of the opinion that for the RBA to cut rates, the labor market needs to weaken along with the broader deterioration of economic conditions.
Key points
RBA to cut rates in November 2019 and February 2020.
China rebound and stretched short positioning could bode well for the Aussie dollar in the near term.
AUD is a sell over the long run, courtesy of high levels of household debt and the negative impact of deleveraging on the economy.
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