Forex Flash: RBA may refrain from rate cuts tomorrow - RBS

According to RBS strategist Drew Brick, "with the direction of global growth currently still in the “balance”, as the RBA might say, the central bank may well refrain from rate cuts for now."

He adds: "We would note, however, that both underlying and headline inflation run below the RBA’s expectations right now – and we wouldn’t be surprised if both near term growth and inflation forecasts are revised lower after this week’s policy meeting, leaving the RBA with an easing bias all-in."

Feb 4, 2013

Forex Flash: RBA cut less likely this week - NAB

According to the latest NAB view on the upcoming RBA meeting, which shows consistency with last week's reports, "rate cut by the RBA this week is less likely" although the bank still expect more rate reduction down the road. "NAB’s view remains that more rate cuts will be needed during the course of 2013 as the boom in mining investment fades and the unemployment rate rises" the bank said.

Forex: EUR/AUD retreats from 1.3117 session highs

EUR/AUD is last around session lows at 1.3071, off session highs at 1.3117, touched two times already, and almost same price the cross ended previous week, down so far -0.27% for the day, mostly on the back of Euro weakness. Gold is printing fresh weekly highs above the $1670 handle.