RBA to cool policy again

It is extremely likely that the RBA will cut rates at its 7 April meeting or at the latest at the subsequent meeting on 5 May.

Societe Generale says the renewed currency strength would raise the already high likelihood of this decision, but in any event, the February cut was almost certainly the start of a mini easing cycle.

The publication of new growth and inflation forecasts has reinforced this view. Finally, Australia's foreign trade balance has deteriorated notably, suggesting that the central bank won't abandon the currency war.