Odds of an Aussie rate cut now higher than a UK rate hike

Dovish RBA minutes overnight and fears of a collapse in Japanese demand for Australian raw materials are helping increase odds of a rate cut by the RBA at its next meeting. Odds jumped to 34% of a cut at the close of Asian trade from only 5% yesterday.

AUD/USD is off its lows but is 180 pip below US closing levels of 1.01.

Odds of a UK hike are only 7% at the April MPC meeting despite inflation being double their target. Cable is mid-range, at 1.6080, off 1.5980 lows and 1.6180 highs.