Created
: 2024.05.07
2024.05.07 17:54
Analysts at TD Securities assess the Reserve Bank of Australia's (RBA) policy decisions.
"The RBA left the target cash rate on hold at 4.35% as was widely expected, but the Statement and Press Conference fell short of the hawkish tilt anticipated by us and the market. The Bank's CPI forecasts for this year were lifted appreciably, setting a high bar for the Bank to hike by its August meeting. The Bank hasn't ruled out hiking, but given longer-term trimmed mean inflation forecasts were left unchanged, the implication is the RBA expects to keep the cash rate on hold for even longer. The forecasts imply the absolute earliest the RBA cuts would be Aug'25, if not later."
"Today's decision could see some profit-taking from AUD bulls on the crosses given the stretched run-up in AUD/NZD and AUD/CAD. Given RBA's lack of desire for hawkish action, we expect AUD/USD to be pinned back below the 0.66 handle, trading towards 0.64 by end June. We believe more USD strength lies ahead as the FX market is increasingly focused on inflation trends."
Created
: 2024.05.07
Last updated
: 2024.05.07
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy