The Reserve Financial institution of Australia is broadly anticipated to chop charges tomorrow morning (06.30 CET), ING’s FX analyst Francesco Pesole notes.
Room for AUD/USD upside
“Markets had beforehand speculated on a 50bp transfer, however the US-China deal and a slower inflation decline in comparison with expectations have cemented the 25bp name. We consider the RBA will retain a great deal of warning on ahead steering, however ought to sound a bit extra dovish, implicitly endorsing market expectations for 2 further cuts in 2025 after this one.”
“We nonetheless see room for AUD/USD upside on the again of home US negatives and improved threat sentiment. We goal a return to 0.650, and do not assume this RBA lower will get in the best way.”
