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Home›Forex›Major Pairs›Australian Dollar: RBA hike mostly priced, risks of di…

Australian Dollar: RBA hike mostly priced, risks of disappointment – DBS

Philip Wee at DBS Group Research notes that AUD has largely priced in a 25-bps RBA hike to 4.85% at the November meeting, following an acceleration in CPI inflation. He warns that the RBA could still disappoint by pausing or signalling a near-peak in rates, with downgraded GDP and higher inflation forecasts highlighting a difficult policy trade-off and a tentative AUD/USD recovery.

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