The firm previously saw the RBA staying on hold throughout 2019
In a note to its clients, the firm is revising its call on the Australian central bank's interest rate decisions citing further signs of weaker growth and increasing downside risks.
They note that the RBA will probably lower the cash rate by 25 bps each in July and August, stating that it's unlikely for the central bank to hold off on easing for too long as it can take a while for the impact of a rate cut to filter through to the economy.
We're now seeing more and more houses make such a call with the most impactful one being Westpac's change of heart at the end of last month. As more of this filters through, expect that to have a significant change in sentiment towards the Australian dollar's outlook.
AUD/USD is now trading at the lows around 0.7075 as the dollar gains some ground on the session but also as early gains are tempered with following mixed data, despite more optimistic US-China trade headlines from the weekend.
