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Flash: RBA to jawbone the A$ – BAML

FXstreet.com (London) – Strategists at Bank of America Merrill Lynch said they believe the RBA will be on hold at its meeting next week as it continues to assess the data flow.

Key Quotes:

“However, it has seemingly sought to loosen monetary conditions by making a concerted effort to talk the A$ lower in recent communications. With a depreciation of the currency the RBA’s preferred means of loosening conditions and supporting the rebalancing of the economy, rather than by lowering the cash rate further”.

“Although investment intentions improved in data released this week we are not convinced it did so enough …read more