With 22 of the 26 economists polled by Bloomberg expecting a 0.25% cut, not to mention an apparent insider article out of the Sydney Morning Herald last week, the market has positioned itself accordingly. AUD/USD has come down hard off it’s 80c highs we saw last week along with all other Aussie pairs showing weakness. Public expectation is that the RBA will cut AND maintain an easing bias on the back of lowering outlooks on growth. The futures market suggesting a 70% chance of a cut compared to 30% of no change. Just remember that in April, the market also priced in a 75% chance of a cut and we got no change… But ... (full story)