Sean adds: "For the past two months the RBA has judged that the inflation outlook is low enough to 'afford scope to ease policy further, should that be necessary to support demand.' A minority of pundits has suggested that the RBA is so firmly on hold that it will remove this phrase today. If it does so, AUD/USD would probably finally break through 1.0500."
However, Sean admits that the RBA would gain little from such an obvious change in bias, saying that "the past month has not provided substantive new information on investment plans or other key readings on demand, but we have seen record highs on AUD TWI, which would be exacerbated by a change in the RBA’s tone today.
"AUD/USD should suffer only a modest dip if the statement is as we expect" Sean concludes.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.