RBA Decision Day: Rates Expected on Hold But Future Hikes Possible as Aussie Dollar Strengthens
• RBA expected to keep interest rates on hold at 4.35% though some predict a 25bps hike • Governor Bowman seen as more hawkish than predecessor; Aussie dollar hit 4-month high before retreating • Tokyo inflation figures today may show slowing price growth, giving Bank of Japan room • US dollar rebounded yesterday on higher yields; hedge funds have unwound long dollar bets • Key data today Australia interest rate decision; Tokyo and South Korea inflation numbers