RBA: FX market expecting too much - ANZ

Daniel Been,  Head of FX Research at ANZ, explains that following the surprising tilts from the ECB, BoE, and BoC last week, the market is on the hunt for hawkish central bank surprises and is expecting a bit too much from the RBA’s forthcoming meet.

Key Quotes

“We do not think that the RBA will satiate them. The economy is still running at levels just above stall speed and the recent improvement in employment will not be enough to prompt a shift in bias.”

“We think the RBA is comfortably on hold and will not want to send a signal to the contrary. AUD bulls beware.”