RBA preview: What to expect in AUD/USD?

By FXStreet AUD/USD has been under strong pressure ahead of the RBA monetary policy decision, with both domestic data and worse-than-expected Chinese PMI leasing to an early selling in Tokyo, which has taken the rate from 0.7150 session highs down to flirt with levels near 0.71, with the RBA outcome now to provide clues on the next direction.

What to expect from the RBA meeting? – Nomura

Andrew Ticehurst, Australia/New Zealand Rates Strategist at Nomura, notes: “We believe that developments over the past few months will have shifted a reluctant Reserve Bank of Australia (RBA) further towards easing. We expect its statement to read somewhat more dovishly on balance and we continue to look for a lower cash rate this year, forecasting a 25bp rate cut in May. We provide our take on recent developments and how they will likely impact the RBA’s thinking below.”

Andrew adds: “The RBA is also not a fan of super-low cash rates and, moreover, it believes that it is not the level of the cash rate that is holding the economy back; indeed, the RBA is uncertain that a rate cut could actually achieve a meaningful result and is not yet convinced that the economy requires more policy …read more

Source:: FX Street