The AUD/USD is firmer through early trading which may reflect view that expectations for an RBA rate cut at 0430 GMT are too aggressively priced. Sean Callow, currency strategist at Westpac says the market is pricing in 36 basis points of cuts. If the RBA cuts by just 25 basis points, it would support the AUD, he says. Callow says it also reflects a "regional risk bounce" with other currencies slightly firmer in recent hours. Callow adds markets are also looking for some positive news from the world's biggest central banks this week with regards to supporting Europe and world growth generally, while market positioning also remains heavily short AUD/USD. The AUD/USD is now at 0.9743.
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