Forex Flash: RBA rate call in May next potential date to cut - Nomura

FXstreet.com (Barcelona) - According to Nomura, yesterday's RBA monetary policy statement barely changed its position from March, still keeping the door open for further rate cuts.

From Nomura: "The rates market has slowly been unwinding rate cut expectations over the past few weeks after some commentators suggested the bias to ease would change. As the easing bias was left unchanged from March, any moves to price in near-term cuts will likely be limited. Conversely, the fact that the easing bias was retained could be taken as a sign that the RBA wishes to keep its option to ease should conditions warrant such a move."

The bank adds: "While the statement is largely neutral, in our opinion, there is a little more concern over the continued strength of the AUD and the trade-weighted index, with the exchange rate about 3% higher since the last meeting. We continue to believe that the RBA prefers to wait for the CPI data release on 27 April before deciding whether to cut rates or to remove its easing bias, which makes May the next realistic potential date to cut rates."