"Would like to see the reserve drop the rates next month to take...

"Would like to see the reserve drop the rates next month to take the heat out of the A$."

I think that's almost assured Paddy boy along with subsequent drops.
Bernanke is intent on dropping the US dollar further (see my last post on Rickards interview) and that together with the increased very cheap money supply will likely push our dollar higher so the reserve here will have a good excuse to drop rates-especially as a higher dollar here means reduced inflationary pressures here.
If we don't try and lower our dollar, our exporters as well as our manufacturers for the local market will suffer further. Our car industry is the latest under threat.
Less employment also gives the reserve reason to drop rates.
Banks as well as auto manufacturers are among the headline grabers for lay-offs recently.
The only natural downward pressure we have for our dollar is a potential slide in commodity prices through a China slowdown so that may be an offsetting factor if China does not also stimulate.
Hopefully we get some rate cuts first before any China slowdown, but the reserve may not want to drop too much to keep some ammo for a possible China slowdown.