We’re not expecting any change in the cash target rate.
The main focus is on the accompanying statement – will it be more or less dovish than recently?
If its less dovish there is a risk of further rallying for the AUD – which the RBA does not want. Its a delicate balance for the RBA, if they discuss a much improved outlook they’re going to get a higher AUD to have to deal with. The statement is going to be closely dissected for signs of this.
