Forex Flash: RBA to hold today but easing bias to persist - NAB

FXstreet.com (Barcelona) - The RBA monetary policy meeting is due today at 3.30GMT. According to NAB, "while the market has been busily pricing out the likelihood of any further reduction to the rate in this cycle (8% chance of a cut today), it is worth noting that the AUD/USD has, in trade weighted terms, appreciated by some 3% since the RBA last moved rates in December."

NAB expands by saying that "this is the equivalent to at least 50bp of tightening under an appropriate ‘monetary conditions’ rule and will doubtless be irksome to the Board." The bank does not expect a rate cut today, however, "we do expect the statement to re-iterate than an easing bias remains very much in place" NAB notes.