RBA preview: Little scope to change key language - RBS

By FXstreet.com | Updated August 04, 2014 AAA

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

Related Forex Analysis
  1. Forex News

    Weekly Trading Forecast: Will Fed and Greek Elections Keep FX Volatility Boiling

  2. Forex News

    Dollar and S&P 500 Traders Hold Breath for Fed Decision

  3. Forex News

    Bullish USD/JPY Outlook Vulnerable to Less-Hawkish Fed, Dismal US GDP

  4. Forex News

    Trading Video: EURUSD, EURJPY and EURGBP Ready for Greek Election

  5. Forex News

    Strategy Video: Euro Risks Are Not Extinguished by ECB Stimulus

Trading Center