FXStreet (Bali) - According to RBS FX Strategists, there is little scope for the RBA to change its key language on the policy rate today.

Key Quotes

"The RBA August decision is due and we anticipate no change in interest rates. We see little scope for the RBA to change its key language on the policy rate that implies a period of stability."

"However, we feel the recovery in the domestic economy has strengthened."

"A more positive outlook for domestic growth will likely depend, at least in part, on a weaker currency, meaning we anticipate the RBA will keep its foot on the gas in efforts to talk down the currency."

"However, the ability to talk the AUD down further is likely reduced after a series of high profile comments from Governor Stevens."

"Because we see scope for US short-term interest rates to resume a rising trend, we feel AUD strength vs. EUR and JPY is more likely than AUD/USD upside. Australia’s trade balance for June is released as well after the deficit expanded sharply in May.

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    EUR/USD to Eye 1.1000 Support on Strong U.S. Non-Farm Payrolls (NFP)

  2. Forex News

    EUR/USD paring gains ahead of US non-farm payrolls report

  3. Forex News

    EUR/USD could see a dip towards 1.10 levels – FXStreet

  4. Forex News

    EUR/USD forecast: all eyes on Payrolls – Commerzbank and UOB Group

  5. Forex News

    EUR/USD recovery capped at 1.1080

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!