Flash: RBA expected to hold rates in June - DBS Group

FXstreet.com (Barcelona) - DBS Group analysts note that the Reserve Bank of Australia (RBA) is expected to keep its cash target rate unchanged at 2.75% on June 4.

They comment that at the last meeting on May 7, the central bank surprised with a 25 bps rate cut, which subsequently brought AUD/USD below 1.02 to a low of 0.9526 on May 29. Externally, a recovery from here in the Oz will depend on USD/JPY pulling below 100, and the US dollar losing its strength from Fed tapering expectations, and more importantly, better-than expected Chinese data.