Market analysis: The "red and white face" strategy of the Reserve Bank of Australia has been quite effective.

The Australian central bank seems to be using a "good cop, bad cop" strategy to signal its intentions before the policy meeting. Deputy Governor Andrew Hauser plays the role of the "bad cop," with his hawkish comments last week causing panic in the markets and shifting expectations for a rate hike from May to March. On the other hand, Governor Michelle Brock is more cautious and prefers to wait for data to justify any policy changes. Brock is likely prepared to wait until May and the release of first-quarter CPI data before making a decision, possibly even waiting for resolution of the Middle East conflict.