Forex Flash: RBA in wait and see mode - BTMU

FXstreet.com (Barcelona) - Derek Halpenny, European Head of Global Markets Research at the Bank of Tokyo Mitsubishi UFJ notes that we had the minutes from the RBA meeting on 5th March and as was signalled in the statement, the RBA expressed optimism that the positive impact of monetary easing on the economy “still had further to run”, confirming again the likelihood that the RBA is in wait-and-see mode to assess the 175bps of easing that has been implemented since November 2011.

He writes, “That will help support the Australian dollar and may well help encourage renewed retail investor inflows to Australia from Japan. Finally, there is some focus on the re-appointment of Masayoshi Amamiya as head of the BOJ monetary affairs department. Viewed as pro-active in regard to policy, the appointment will likely be viewed positively by the market, although the news won’t alter BOJ market expectations.”