The Reserve Financial institution of Australia delivered a broadly anticipated 25bp fee lower, prompting a modest AUD dip as markets considered its lowered inflation and development forecasts as dovish, ING’s FX analyst Francesco Pesole notes.
AUD dips on dovish development, inflation outlook
“The Reserve Financial institution of Australia lower charges by 25bp as broadly anticipated. The AUD is barely weaker, with markets decoding the RBA’s downward revisions to inflation and development as a dovish sign.”
“Nevertheless, Governor Michele Bullock saved ahead steerage open-ended and data-dependent. Given already aggressive easing expectations, we stay constructive on AUD over the approaching months.”
