The Reserve Bank of Australia spet monetary policy board meeting is on Tuesday 01 September 2017
Announcement at 0430GMT along with the accompanying statement
And, that's not all from the Bank next weel, three is plenty more as I posted here: AUD traders - next week is a big one for RBA communication - mark up your diary
Enough of the preamble, this from Bank of America / Merrill Lynch:
Testing times for the RBA
- The RBA could send a stronger signal that the next move in rates is up if housing remains resilient and rates rise elsewhere
- A shift in bias would prompt us to review our curve views. Political risks are rising, but this should remain a distraction.
- FX valuation is unlikely to be a concern yet suggesting the AUD should remain supported in the absence of a slowdown in China
Policy enters testing period
In our view, the Reserve Bank of Australia (RBA) is set to keep policy on hold when the board meets next week. This will extend the period of unchanged rates at record lows beyond a year. However, the policy discussion should get more interesting now that the forecast round is out of the way and the next Parliamentary testimony is six months away.
There are some important data releases due in coming weeks that will test the RBA's confidence in their outlook, notably GDP on 6 September, but it will be developments in housing and global events that should have more bearing on the Banks guidance. We expect a stronger signal that the next move in rates is up, but timing will depend in part on other central banks moving first.
We still expect a move to gradually normalize policy from 1Q18 ... A slow and gradual RBA move away from record low interest rates should keep the curve steep, especially as political uncertainty is set to remain a distraction for a few months yet. With FX valuation unlikely to be a concern for the RBA yet, the AUD should remain supported (in trade weighted terms) in the absence of a slowdown in China.
(bolding is mine)
