Forex Flash: AUD/USD On alert for signs of increased dovishness in RBA - UBS
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AUD/USD
FXstreet.com (Barcelona) - As most of economists today, the UBS team also "expects the RBA to remain on hold at
today's policy decision. However, FX investors will be alert for any signs of increased dovishness or even outright concern due to the sharp declines in commodity prices recently," the bank says.
"In particular, we will be listening for any material change to the policy language referring to the exchange rate," they add, noting they "would be surprised to see a major shift in tone here, given that RBA Governor Stevens did not seem overly concerned when he spoke on August 24," when the pair was trading above 1.0400 back then.
In the previous policy statement, the RBA recognized: "The exchange rate has remained high, despite the observed decline in the terms of trade and the weaker global outlook." UBS sees a 1 month target for AUDUSD at 1.05 while for the 3 month period forecasts parity.
today's policy decision. However, FX investors will be alert for any signs of increased dovishness or even outright concern due to the sharp declines in commodity prices recently," the bank says.
"In particular, we will be listening for any material change to the policy language referring to the exchange rate," they add, noting they "would be surprised to see a major shift in tone here, given that RBA Governor Stevens did not seem overly concerned when he spoke on August 24," when the pair was trading above 1.0400 back then.
In the previous policy statement, the RBA recognized: "The exchange rate has remained high, despite the observed decline in the terms of trade and the weaker global outlook." UBS sees a 1 month target for AUDUSD at 1.05 while for the 3 month period forecasts parity.
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