RBA Preview: No change expected, with a cautious stance on wages likely - Barclays

Barclays FX strategy research presents their brief preview on what to expect from the upcoming RBA’s cash rate decision.

Key Quotes:

"We do not expect any policy change from the RBA, with a cautious stance on wages likely to continue to act as a restraint.  We look for the RBA to stay in a holding pattern in H1 2018, waiting for signs of a more broad-based recovery across businesses and in household incomes before firmly signaling any change in policy stance. We maintain our forecast that the RBA will raise the policy rate 25 basis points at the August 18 MPC meeting, followed by 25 basis point rate hike in November.”

On the AUD front:  

"A decrease in Australia's yield advantage of the US is also undermining the AUD."