AUD: Market still comfortable staying short ahead of the RBA

One thing we can be pretty sure of is that the RBA will release a more dovish statement this afternoon and the market is betting heavily on this, with shorts at quite extreme levels already according to most interbank reports. There is certainly a possibility that they will cut rates today but I’m of the opinion that last weeks CPI number will ensure that they wait at least another month.

Local dealers report decent two-way interest with buyers between .7780/90 and sellers between .7835/50, which should keep us range-bound pre-RBA decision at 2:30 pm Sydney time.

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