In their preview, Citi is looking for an RBA rate cut at today's policy board meeting
They say:
Market lean in favor of an ease appears to have been fueled by a series of dovish articles by market commentators, as well as the somewhat firmer tone from AUD
Citi is referring specifically to the article in the Sydney Morning Herald last week, Ryan gave ForexLive traders the early warning.
Back to Citi:
The RBA has expressed a preference for AUDUSD to trade closer to 0.75, so the test above 0.80 last week is seen as supporting the case for a cut
Indeed, we believe this latter argument could prove the factor which tips the balance in favor of action, in part because the RBA will not want to encourage further appreciation amid the pause in the broader dollar uptrend"
On the AUD, Citi is looking for downside in the wake of the announcement, but prefer selling the AUd against crosses rather than the USD
