AUD: RBA On Hold Next Week But Next Move Is Up Perhaps Sooner Than Expected – BofAML

The Australian Dollar has been struggling with the fresh strength of the US Dollar following the hike by the Federal Reserve. Australia’s central bank is next.

Here is their view, courtesy of eFXdata:

Bank of America Merrill Lynch Research discusses its rate expectation for the RBA meeting next week and over the medium-term.

“The RBA is likely to remain on hold next week following another dovish hold by the RBNZ today,” BofAML projects.

“We, like the RBA, still see the next move in rates as up. Current economic momentum suggests the risk is for an earlier challenge to current market complacency in RBA pricing.

The strength of the economy provides significant fiscal flexibility for the Morrison government to underpin household incomes and broader spending ahead of the next election in the mid-year Budget update in December,” BofAML adds. 

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