RBA: Don’t rock the boat baby
The RBA proved yet again to be one of more predictable G-10 Central Banks offering up standard fare of no rate cut with no serious attempt to adjust forward guidance. Given the growing ASX momentum lifted by gains in local miners on the back of surging commodity prices, the Aussie dollar bears may be better-served waiting for Fridays Statement of Monterey Policy. And specifically, the RBA’s possibly revamped CPI projections given the tepid Q3 CPI data, which continues to track below the lower end of the RBA’s 2-3 % inflation band. But to be honest anything other than the glass half full approach from theRBA would be a surprise at this stage. The Aussie initially moved higher because some thought the RBA would tack dovish, so bearish bets unwound
