RBC update their view on the Reserve Bank of Australia

  • Push back timing of expected rate hike to Q4 of 2019
  • RBC then expect another hike in Q1 of 2020
  • After that, RBA will sit at 2% for some time

RBC add …

  • we admit to thinking about dropping these hikes altogether
  • The longer the RBA sits at 1.50%, the less sure we are about the direction of the next move
  • especially if global activity turns more modest in H2 2019 and 2020

--

Meanwhile AUD/USD is dribbling off a few more tics. We have had more political moves, the fin min spitting the dummy and tendering his resignation, along with another 2 ministers. They support the challenger Peter Dutton