Sean Callow, Research Analyst at Westpac, points out that the AUD/USD pair on Mon-Tue reached highs since August and since then however, it has been oneway traffic lower, with global equities quickly finding fresh reason to worry about the trade outlook (“Tariff Man”) and Australia’s weak Q3 GDP data.
Key Quotes
“Souring the domestic story so badly that interest rate markets have removed all pricing for the RBA to raise the cash rate next year.”
“Such a move is probably overdone, partly a function of a global mood that might not be sustained. Meanwhile, key commodity prices are picking up again and the US dollar has lost considerable yield support. This should help AUD find buyers on dips under 0.7200.”
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