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The Australian Dollar has been struggling with the fresh strength of the US Dollar following the hike by the Federal Reserve. Australia’s central bank is next.

Here is their view, courtesy of eFXdata:

Bank of America Merrill Lynch Research discusses its rate expectation for the RBA meeting next week and over the medium-term.

The RBA is  likely  to  remain on hold next week  following another dovish hold by the RBNZ today,” BofAML projects.

We, like the RBA, still see the next move in rates as up. Current economic momentum suggests the  risk is for  an  earlier  challenge to current market  complacency  in RBA pricing.

The strength of the  economy  provides significant fiscal flexibility for the Morrison government to  underpin  household  incomes and broader spending  ahead of the next election in the mid-year Budget update in December,” BofAML adds.  

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