Extended Hold For RBA; Staying Bearish AUD From Current Levels – BofA Merrill
The 3Q inflation data released yesterday highlights two themes for AUD markets.
A higher-than-expected headline print might take a November rate cut from the Reserve Bank of Australia (RBA) off the table. But a particularly weak pulse of underlying inflation and below-trend domestic activity means any currency strength resulting from a "rates on hold" view would not be welcome.
