Citi: TOTW Buy AUDJPY Y79.75, target Y82,.....>

FOREX: Citi: TOTW Buy AUDJPY Y79.75, target Y82, stop loss Y78.75.

Citi add, markets may be leaning too dovish into the upcoming RBA decision.

Specifically, it may be too soon for the RBA to flag rises in market interest

rates in its policy statement awaiting follow through from a broader range of

domestic banks and there is likewise too much uncertainty on potential pass

through from recent political developments for policymakers to dwell on this

factor. With underlying economic data flow showing strength both relative to

expectations and on an absolute basis since the last policy decision, the terms

of trade modestly higher and trade-weighted AUD lower, the likelihood may be for

a little changed policy statement and for Governor Lowe to reiterate that the

Bank has significant scope for patience before moving rates in his later

comments. Investors risk being disappointed should the Governor not move to flag

risk that the next move in rates may be in either direction, implying increased

risk for a cut in line with the 'truly' neutral bias of the RBNZ.