Bank of America expert expects no big changes from the RBA July meeting next week but sees little risk of a near-term hawkish surprise.
" This is likely to be little risk that the RBA will follow other Central banks and surprise the market with a hawkish signal. The RBA has made it clear it wants to see labor market progress become more broad-based across the states and see average hours worked to recover.
The bank will likely remain in assessment mode to see how the broad range of macro-prudential and fiscal measure to address housing sector imbalances are playing out. This is likely to remain the case for a few months yet.
For the AUD, BofAML maintains its view that AUD/USD will eventually revert towards the lower end of its trading range of the past year but argues that we need clearer evidence of a slowdown in the external demand before this becomes a tradable opportunity.
Source: Bloomberg Pro Terminal
Trader - S. Fuchedzhiev
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.