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.