Credit Agricole Research discusses its expectations for the RBA announcement on Thursday.
"Thursday will be a busy day for the AUD with the RBA and potentially the Australian government announcing more measures to support the economy as well as the release of Australian labour market data for February. The labour market data will reflect the potentially lagged impact of the bushfires, but not yet the coronavirus...The market looks for modest employment growth of 6.3k jobs and for the unemployment rate to be steady at 5.3%," CACIB notes.
"The RBA will likely announce a 25bp rate cut on Thursday to take the cash rate to its lower bound of 0.25%. The focus will be on what the RBA does next, however, and we expect the announcement of a YCC policy measure with the RBA targeting a yield for specific tenor of Australian government bonds....It would not be a weaponisation of the AUD, in our view. So the key metrics to watch out for in the RBA’s unconventional monetary policy announcements tomorrow will be: 1) QE or YCC; and 2) the targeted level of yield," CACIB adds.