“In addition to domestic data, the AUD is likely to continue reacting to the good and the bad news regarding the Chinese economy with which it is heavily exposed to due to trade,” Rabobank analysts note.
Key quotes
“As China stimulates its economy to fights the effects of a trade wars, Australia exporters may breathe a sigh of relief in the first instance. However, the need to support growth suggests the potential for downside pressure on the CNY in the months ahead and this is a risk to China’s trading partners.”
“We see scope for AUD/USD to end the year around 0.68. We expect NZD/USD to trend lower towards 0.63 on a 12 mth view.”
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