Flash: RBA to keep market in two minds about easing timing - RBS

FXstreet.com (Barcelona) - Today's RBA minutes is likely to acknowledge an easing bias but keep the market in two minds about the likely timing, says RBS Strategist Greg Gibbs.

Gibbs adds: "We have no reason to think it should alter rate expectations. Currently the market is seeing a 27% change of a cut in July, and a 71% chance of a cut in August."

Gibbs points also at the latest IMM positioning - quite short the AUD - as a factor to be cautious, as it leaves the selling side vulnerable to a short squeeze.