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### POV - The RBA as expected left the.......>

AUSSIE
AUSSIE: ### POV - The RBA as expected left the cash rate unchanged at 1.5% on
Tuesday. In the statement that followed the board did note an appreciating
exchange rate would be expected to result in a slower pick-up in economic
activity and inflation than currently forecast.
Despite this AUD/USD holds a buoyant tone amid a backdrop of persistent dollar
weakness and rising commodity prices.
MNI FX Pi highlights scope for AUD bullish positions to extend. (See MNI FX Pi -
FX Positions Indicator email). However, traders remain cautious as the RBA has
the scope to lower the cash rate further and is prepared to use it if there are
signs a rising AUD is dampening growth and inflation. (See RBA may use scope to
lower rate - MNI Exclusive Insight email).
Focus turns to Friday and release of the quarterly SoMP (0130GMT) where the RBA
will outline its revised growth and inflation forecasts for 2018 and 2019.

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