FXStreet (Guatemala) – Analysts at ANZ noted that it is a big day in Australia, ,with Q1 Balance of Payments (11:30am AEST) and the RBA interest rate decision (2:30pm AEST) on the calendar.
Key Quotes:
“The ACT Budget is also released at 3.00pm AEST.”
“The main event today is the RBA’s June Board meeting.”
“The Board is widely expected to leave the cash rate unchanged at the historic low of 2%. We expect that the Bank will want to sit tight over the next few months to gauge the impact of the two rate cuts delivered in February and May this year.”
“We do not expect too much change in the statement: broadly speaking recent trends remain intact, ie growth is set to remain below trend with weakness in business investment (both mining and non-mining) being a key drag.”
“While we expect the RBA continues to hold an easing bias, we do not anticipate an explicit comment in today’s statement about the potential for further monetary policy easing, but rather a more generic statement suggesting the Bank will continue to assess the outlook for the economy and adjust policy accordingly.”
“The USD is strengthening as US data continues to support the cause.”
(Market News Provided by FXstreet)