Published: 2025-02-18T01:53:54.000Z
AUD/USD flows: Front running RBA

FX Analyst
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Market participants pricing in a RBA cut
Market participants are pricing in a RBA cut on Tuesday and is seen front running the move to offer the Aussie against the USD. However, we think there will likely be surprise to the hawkish side as they have been downplaying the dip in headline inflation. Yet, we see the RBA to cut earlier than their previous forecast of mid 2025 as inflationary development exceeds their expectation.
AUD/USD is down 0.35 at 0.6338.