Just checking out some of the overnight notes, where Reserve Bank of Australia thoughts figured prominently after their Tuesday meeting

I'll pop up a few of the analyst responses.

Starting with Barclays (in brief)

RBA: No major change in guidance

  • Ahead of this Friday's Statement on Monetary Policy, the RBA signaled that it expects its projections to remain broadly unchanged, despite the recent downside surprise in inflation.
  • There was no change in the central bank's policy guidance: the RBA maintained its view that the economy remains on a path of gradual recovery, with inflation picking up only slowly amid low wage and income growth.

Cautious optimism on growth outlook continues.

  • noting strong employment conditions, higher capacity utilization and ongoing improvement in non-mining business investment
  • a cautious note on the outlook of household consumption, indicating that it was a "continued source of uncertainty," especially given that incomes are rising slowly and debt levels remain high

On inflation, the RBA ... continues to expect a gradual pickup in inflation over 2018

  • We believe that underlying inflation will be closely watched by the RBA, and it currently expects inflation to remain low amid increased retail competition and subdued labour costs.
  • Overall, today's policy decision gave little away in terms of any major rethink on the RBA's part. The recent economic data have been mixed, with the focus now shifting to Q3 wage and GDP data over the next month. In terms of monetary policy, we expect the RBA to stay in a holding pattern in H1 18 and wait for signs of a more broad-based recovery across businesses and in household incomes before firmly signaling any change in policy stance. We expect the RBA to stay on hold until H2 18 and raise the policy rate 25bp at the August 2018 MPC meeting followed by a 25bp rate hike in November


AUD weakened overnight, in line with broader USD strength and the slip in China commodity prices Tuesday