RBA: Risk of rate hike has eased - BBH

Research Team at BBH, suggests that the risk of an RBA rate hike has eased over the past week or so, helped by stronger than expected exports and Q1 GDP. 

Key Quotes

“We have consistently argued against back-to-back rate cuts, and the market has come around to this conclusion as well.  Only 1 of the 25 institutions (a Canadian bank) surveyed by Bloomberg expect a cut.  The RBA statement will mostly likely be dovish especially given the Australian dollar is looking perkier.  Technically, we see scope for the Aussie to continue to retrace the losses suffered from late-April through late-May.”