Once again the RBA has come across as being very bullish on the Australian and regional Asian economic outlook. They downgraded the Q4 2010 GDP forecast by 0.5% due to the floods but they still forecast a strong, even improved, economic outlook and they’ve also raised their inflation forecast by 0.5%. Chances of a sooner-rather-than-later rate hike have increased significantly one would think. What they do add as a cautionary note is that they have not factored in the impact of this week’s cyclone.
Stops have been triggered in the AUD/USD to a high of 1.0176. More stops are reported around 1.0190 but some selling interest is appearing. It’s certainly hard work for the AUD bears out there who’ve been trying to pick a top.
