In what promises to be another volatile week for the Aussie Dollar, the RBA is set to release its Quarterly Monetary Policy Statement, which is likely to offer familiar rhetoric justifying a further reduction of borrowing costs. Many analysts are now suggesting we may see a further 1 ˝ points come off the base rate in Australia.

This looks likely to add pressure to the AUD, particularly in the wake of The RBA’s surprise decision to cut benchmark borrowing costs by a greater-than-expected 75 basis points to bring rates to 5.25%. RBA Governor Glenn Stevens sounded ominous in the statement accompanying the decision, saying that "it appears likely that spending and activity will be weaker than earlier expected." Stevens again reiterated that although consumer price inflation remained high in September, the RBA policy board continues to believe that inflation will moderate over time as slowing global and domestic demand takes its toll. These comments do little to suggest any diversion from the current policy and implies that the GBP/AUD cross will continue to be dominated by relative weakness.

In these uncertain and volatile times, it would be worthwhile speaking with your account manager about the benefits of Stop-Loss and Limit Orders.