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8 Aug 2014
RBA's SoMP, China trade next up - RBS
FXStreet (Bali) - FX Strategists at RBS see risks to the AUD as modestly on the topside on today's Statement on Monetary Policy(SoMP) by the RBA.
Key Quotes
"The RBA releases the Statement on Monetary Policy (SoMP) that accompanies the August post-decision press release on Tuesday. The post-decision press release showed that the RBA’s outlook for interest rates and the economy is little changed overall, meaning the scope for major revisions within the quarterly SoMP is low."
"We feel that at the margin the RBA will sound more upbeat on domestic growth conditions while not ramping up their concern on the strength of the currency (which has already been well signalled). That leaves us as seeing the risks to the AUD as modestly on the topside through the release. China’s trade balance is expected to be released as well, which may prove to be a greater driver of AUD sentiment over the next 24 hours."
Key Quotes
"The RBA releases the Statement on Monetary Policy (SoMP) that accompanies the August post-decision press release on Tuesday. The post-decision press release showed that the RBA’s outlook for interest rates and the economy is little changed overall, meaning the scope for major revisions within the quarterly SoMP is low."
"We feel that at the margin the RBA will sound more upbeat on domestic growth conditions while not ramping up their concern on the strength of the currency (which has already been well signalled). That leaves us as seeing the risks to the AUD as modestly on the topside through the release. China’s trade balance is expected to be released as well, which may prove to be a greater driver of AUD sentiment over the next 24 hours."