Goldman Sachs on the Australian dollar and RBA (pushed back rate hike call)

Goldman Sachs have revised their 2018 rate hike call on the Reserve Bank of Australia

• They were tipping February, now say May
• See two hikes from RBA in 2018

More:

Goldman believes the market is underestimating both the pace and magnitude of the coming tightening cycle

• The RBA lowering their inflation forecasts in the SoMP last week reduces urgency to hike ... "buy the RBA some time"
• But .. "Against the backdrop of the fastest 8-month expansion in full-time employment on record, we caution against underestimating the pace at which spare capacity in the economy is being absorbed"

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Earlier from GS (its been a fruitful morning):

• Brexit - Goldman Sachs head Blankfein suggests second referendum
• Goldman Sachs 2018 outlook - soggy dollar, better euro