By eFXdata — Feb 03 - 01:30 PM
Credit Agricole CIB Research discusses its expectations for next week's RBA policy meeting.
"The focus for the AUD in the coming week will be the RBA meeting outcome and its revised forecasts in its SoMP. We expect the RBA to raise its cash rate by 25bp to 3.35%, which would not have much impact on the AUD as the market is about 75% priced for such a hike. Softening household consumption and employment growth leave the market a little hesitant to fully price in a 25bp rate hike," CACIB notes.
"This data also leaves investors on the lookout for any signs from the RBA next week of a pause in its tightening cycle. With the market still pricing in an RBA terminal rate of between 3.60%," CACIB adds.
Crédit Agricole Research/Market Commentary