Will the RBA ease the monetary squeeze?
• European moves. Prospect of more EU defence spending boosted regional equities & bond yields. GBP & JPY firmer. AUD & NZD drift a bit higher.• RBA today. Will the RBA ease some of the monetary squeeze? Markets think so. A 25bp interest rate cut is assigned a ~90% chance.• AUD trends. AUD at levels last traded in mid-Dec. Outcomes compared to expectations drive markets. Is the RBA easing cycle already baked in? Global Trends Given the US President’s Day holiday there wasn’t a lot of volatility overnight. The economic newsflow was light, though European markets did react to US...