ForexLive Asia-Pacific FX news wrap: RBA cuts rates for the first time in four years

• AUD/USD chopped higher on the as expected RBA rate cut announcement
• RBA CUTS by 25bp, as widely expected (to 4.1%, from 4.35% previously)
• 9 of the top 10 RBA cash rate forecasters are tipping a cut – decision is imminent
• Federal Reserve speakers on Tuesday include Daly and Barr
• China’s State Planner says to support private firms
• A rare (photo) decision from the RBA locks in a rate cut today
• GBP traders heads up: Bank of England Governor Bailey speaking Tuesday
• PBOC sets USD/ CNY mid-point today at 7.1697 (vs. estimate at 7.2538)
• USD trading higher in Asia morning
• Russia has freed another American prisoner – New York Times reporting
• What happens to the Australian dollar if the RBA doesn’t cut today?
• More on Xi Jinping’s Call to Boost China’s Private Sector
• Japan Finance Minister Kato says Q4 GDP data signal bright sign in domestic economy
• More from Fed’s Waller – Markets are concerned on deficits and want a term premium
• Fed’s Waller says he expects disinflation and rate cuts to resume this year
• Australian weekly consumer confidence survey fell to 85.1 (prior 86.7)
• More on Goldman Sachs ramping up its 12-month targets for Chinese equity indexes
• Forexlive Americas FX news wrap 17 Feb: US holiday keeps price action limited.
• Bank of Japan rate hikes priced in, yen to weaken
• Trade ideas thread – Tuesday, 18 February, insightful charts, technical analysis, ideas

The
Reserve Bank of Australia cut its cash rate by 25bp today, to 4.1%
from 4.35%.

• This
  is the first Reserve Bank of Australia cash rate cut since the cut in
  November 2020 to 0.1%
• The
  RBA rate hike cycle began in May 2022 with a move to 0.35%, and the
  Bank has been on hold at 4.35% since last hiking in November 2023.

The
Statement from the Bank today did not indicate a succession of cuts to
come, it’ll be slow going from here, but it’s a start. It was a
‘hawkish’ cut.

The
Australian dollar was marked higher immediately given the cut was
widely anticipated. It very soon pulled back to little changed and is
now inching higher as I update.

Reserve
Bank of Australia Governor Bullock is speaking soon, her news
conference begins at 0430 GMT / 2330 US Eastern time.

And,
a reminder, we get to do this all again tomorrow with the Reserve
Bank of New Zealand cash rate decision due, a 50bp cut is expected
but 25bp is live also.

Elsewhere
across the FX space the US dollar showed some strength. EUR, NZD,
GBP, CAD are all lower. There really was no smoking gun catalyst I can
point to.

USD/JPY
was a stand out. It had a quick dip under 151.30 on fin min Kato
acknowledging the strong GDP data yesterday but soon bounced back and
carried on to highs above 152.00 as I post.

I wanted to post an AUD shot but the USD/JPY was just too impressive – another big up day here in Asia:

This article was written by Eamonn Sheridan at www.forexlive.com.