Flash: RBA likely to coerce AUD lower - RBS

FXstreet.com (Barcelona) - Greg Gibbs, FX Trading Strategist at RBS notes that the RBA statement next week may be more comfortable with the AUD, but is still likely to say it is high.

Key Quotes

“It may sound somewhat less dovish on rates in line with higher Q4 inflation, some improvement in business conditions and a surging housing market.”

“However, recent soft labour market data and some additional global uncertainty may help keep the rates outlook balanced.”

“We see some upside risk for the AUD and rates on a somewhat less dovish sounding RBA, although the currency will be heavily influenced by the Chinese PMI released over the weekend.”