5 Nov 2013
Flash: RBA should be neutral, AUD/USD potential for a 0.97 retest - RBS
FXstreet.com (Barcelona) - The RBA policy statement today should be neutral, notes Greg Gibbs, FX Strategist at RBS.
Key Quotes
"It may attempt to talk down the AUD, but it can’t be too forceful with higher CPI, stronger activity and sentiment indicators and stronger global indicators since last month. There seems little need to change the wording from the October statement."
"It may attempt to more pointedly argue that a lower AUD is necessary to support the economy through a transition to lower mining investment, but it will be difficult to be too forceful given the higher than expected CPI data in Q3, recent evidence of improved business sentiment and stronger growth in China and other major economies."
"As such, we continue to see upside potential for the AUD towards its recent highs above .97."
Key Quotes
"It may attempt to talk down the AUD, but it can’t be too forceful with higher CPI, stronger activity and sentiment indicators and stronger global indicators since last month. There seems little need to change the wording from the October statement."
"It may attempt to more pointedly argue that a lower AUD is necessary to support the economy through a transition to lower mining investment, but it will be difficult to be too forceful given the higher than expected CPI data in Q3, recent evidence of improved business sentiment and stronger growth in China and other major economies."
"As such, we continue to see upside potential for the AUD towards its recent highs above .97."