ANZ Research discusses its expectations for next week's RBA policy meeting.
"The RBA will meet and, later in the week, release its Statement of Monetary Policy. We expect the RBA to be relatively upbeat. As always, we will watch their language around credit tightening, but any caution will be offset by a confident view of the labour market. In the SoMP we expect the RBA to nudge its forecast for the unemployment rate lower, but leave its forecasts of GDP and inflation unchanged," ANZ projects.
"The long awaited squeeze in the AUD is materialising. This looks to be little more than a positioning adjustment, with few substantial fundamental changes in train. The domestic data flow is positive, but this is well understood by markets and largely priced in," ANZ adds.