Forex Flash: RBA on hold but with a dovish statement – BBH

Brown Brothers Harriman analysts note that the RBA left rates on hold as expected, and issued a dovish statement.

To them, they feel that a March cut still looks like the odds on favourite and the statement has eroded any potential AUD boost from what has been relatively good data reported recently, including a smaller than expected trade deficit, firm auto sales, and decent housing readings too. They finish by writing, “Add in the fact that the firmer Asian backdrop did not give a boost either to the Aussie, and it would appear that the currency will have a hard time finding traction near-term during a busy data week. Retail sales are out tonight (Wednesday), followed by jobs data Thursday.”