2012.06.05 09:50:32 MARKET TALK: RBA Gives AUD Some Impetus - BNP Paribas

0750 GMT [Dow Jones] The Reserve Bank of Australia gives AUD some impetus, BNP Paribas says, after the Australian central bank announced a 25bp interest-rate cut earlier Tuesday. BNP Paribas notes that the rates market had been pricing in about 40bps of cuts ahead of the meeting, so the smaller cut allowed AUD to rally. It adds that the general improvement in market sentiment is also providing support to AUD, while IMM positioning data show that speculative investors are holding the largest ever net short AUD positions. "This extreme positioning provides plenty of scope for AUD to benefit from even a moderate rebound in risk appetite," the bank says. AUD/USD is now off its highs for the day, trading at 0.9761.(jessica.mead@dowjones.com) Contact us in London. +44-20-7842-9464 Markettalk.eu@dowjones.com (END) Dow Jones Newswires June 05, 2012 03:50 ET (07:50 GMT)