RBA will most likely leave all of its monetary policy measures unchanged in August.
The cash rate will stay on hold at 0.25%, the yield curve control program remains targeting 3-year government bonds at 0.25% and the Term Funding Facility will remain in place. However, the officials’ view on the economic outlook in light of the second wave of coronavirus outbreak is of great interest. We expect the members sound slightly more dovish this month, warning of the high uncertainty in the pandemic and the impacts of the renewed restrictive measures on Australia’s economy. While they will reiterate commitment and readiness to add more monetary stimulus if necessary, the policy focus will remain on the fiscal front. We are also interested in the central bank’s view on the recent strength of Aussie, as a result of broad-based recovery in risk appetite and USD weakness.

Source: www.actionforex.com