FXStreet reports that economists at MUFG Bank expect an extension of the RBA current dovish stance, which will not be a hurdle for AUD appreciation.
“The RBA maintained the cash rate and three-year yield target at 0.10%. Governor Lowe stated that the RBA will review their policy stance in July. The RBA needs to decide whether to shift yield curve control to target the November 2024 maturity bond from the current April 2024 bond. At the same time, the RBA will need to lay out plans for their QE programme. We expect the RBA to announce an extension of their current dovish policy stance in July.”
“The RBA has acknowledged that the Australian economy continues to recover more strongly than expected from the COVID-19 shock. More concerning for the RBA will be below target inflation. The lack of underlying inflation pressure will again encourage the RBA to maintain looser policy for longer.”
“The RBA remains committed to plans not to begin rate hikes until 2024 at the earliest. The RBA’s continued dovish policy stance is set to remain a dampener on further AUD upside as they lean against improving fundamentals. We continue to believe though that it will not prevent further AUD gains from higher commodity prices and improving global investor risk sentiment. We still expect AUD/USD to rise above the 0.8000-level.”
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.42% 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. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2021 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Telerade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Telerade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.