FXStreet (Bali) – Brian Daingerfield, FX Trading Strategist at RBS, expects the RBA to leave the cash rate on hold on Tuesday, adding that but the risks to the statement may be on the dovish side.
Key Quotes
“While the RBA is likely disappointed with the latest private cap-ex figures which showed a second consecutive 4+% decline in expenditures, we expect the RBA to leave the cash rate on hold at next week’s meeting.”
“In a speech earlier this month, RBA assistant Governor Kent noted the jobless rate appears to be stabilizing and the RBA has maintained a fairly positive outlook for the labour market, but the risks to the statement may be on the dovish side as the RBA acknowledges the potential real economic impacts of China on growth and investment.”
“The RBA’s decision comes one day before second quarter GDP growth.”
(Market News Provided by FXstreet)