Flash: Risks of a surprise for AUD on RBA skewed to the downside - Westpac

FXstreet.com (Barcelona) - According to Sean Callow, FX Strategist at Westpac: "Pricing of just -1bp for today’s RBA meeting is backed by the Aug minutes which included a decision to not 'signal an imminent intention to reduce rates further'.

Callow adds "The main interest in the statement is whether the familiar “scope” to cut rates returns and whether there is fresh comment on the business investment outlook (following the Q2 report Westpac saw as quite weak) or on AUD."

Since last month the RBA suggested that “It is possible that the exchange rate will depreciate further over time”, Callow thinks "overall the risks of a surprise for AUD seem skewed to the downside."