Hawkish risk seen for Australian dollar ahead of RBA meeting
Commerzbank expects the Reserve Bank of Australia to keep rates unchanged, but warns that high petroleum prices could tilt the statement hawkish.
AUDUSD
Commerzbank analyst Volkmar Baur expects the Reserve Bank of Australia to leave interest rates on hold at the upcoming meeting, in line with market pricing. However, he sees scope for a slightly hawkish tone in the central bank's communication.
Rising petroleum costs and the already reduced probability of further rate hikes in market expectations could prompt a cautious tilt. The Australian dollar may find support if the RBA signals it is not yet done fighting inflation.
Source: FXStreet Forex News