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Rabobank analysts note that the AUD/USD was boosted overnight by the steady policy announcement from the RBA.  

Key Quotes

“Speculation had been building of a rate cut as soon as this month, despite the fact that Australia is only days away from a general election. Although surveys suggest that the market consensus favoured steady rates today, a very significant minority were in favour of a move – not least due to the weaker than expected Q1 CPI inflation release which put price pressures well below the RBA’s target of 2% to 3%.”

“Polls indicate that the market favours two rate cuts this year. Governor Lowe acknowledged the downside risks with the statement that the Bank “recognized that there was still spare capacity in the economy and that a further improvement in the labour market was likely to be needed for inflation to be consistent with the target.” There is a stronger consensus in favour of a RBNZ rate cut tomorrow.”