FX Watch: AUD/JPY and GBP/AUD’s Trend Continuation Plays if RBA Raises Its Rates

Everyone and their mom expects the RBA to raise interest rates, just six months after cutting them.

Our Event Guide for February’s RBA Monetary Policy Statement shows why the case for tightening has gotten a lot stronger. Inflation came in hotter than expected, and the labor market is still holding up, suggesting the economy is running closer to full capacity than policymakers thought.

If a rate hike fuels Australian dollar strength, setups on AUD/JPY and GBP/AUD could start leaning in favor of the Aussie bulls.