RBA: Rates on hold, very neutral message - SocGen

Kit Juckes, Research Analyst at Societe Generale, explains that the RBA left rates on hold in its June meet and delivered a very neutral message.

Key Quotes

“The Q1 current account deficit came in at AUD 3.1bn, a lot worse than expected, though at 0.7% GDP it’s not outlandish yet. The currency remains resilient. Perhaps some were expecting a more bearish signal from the RBA. AUD/NZD, having bounced off 1.04 yesterday, is re-testing that level. This seems a good place to build tactical longs but the bigger picture is that AUD, like CAD, is building a long-term base.”