The Reserve Bank of Australia monetary policy board meeting in tomorrow.

Earlier previews posted:

Here is another 'on hold' call, this via Nomura (in brief, bolding is mine):

  • "Markets globally have been increasingly driven by coronavirus fear and uncertainty over the past 10 days. This trend has accelerated this morning, likely reflecting reports of rising coronavirus infections and fatalities, and ahead of Chinese markets reopening"
  • "3-year yields to record lows" on some speculation of a cut
  • "We do not expect an RBA rate cut this week, and suspect it would prefer to say less, rather than more, about the coronavirus-impact given current uncertainties"

For the AUD impact - an on hold decision "could offer modest support"

Nomura add if developments on the outbreak worsen further AUD and NZD likely to trade lower.

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Further out, Nomura still forecasting 25bp rate cuts in 2Q and 3Q

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AUD has given up all its slow gains since October starting the beginning of this year, quickening its drop as news of the viral outbreak worsened:

The Reserve Bank of Australia monetary policy board meeting in tomorrow.