ING analysts are out with their thoughts on the risks posed to the Aussie as markets head further into the week.
Key quotes
“While a soft Australian jobs release has dented the Australian dollar, the real source of menace remains US policy.
On the monetary side, higher short-term US rates continue to weigh on high-beta commodity currencies.
On the trade side, the follow-through of US tariffs on Chinese imports is a particular blow for the trade-sensitive AUD.
In a quiet week for global markets, we suspect the latter will be the prevailing narrative – and this doesn’t strike us a particularly conducive risk-taking backdrop.
The June RBA minutes (Tuesday) – as well as Governor Philip Lowe’s participation at the ECB’s Sintra conference (Wednesday) – are likely to be non-events for the AUD.
Look for the pair to remain contained in the 0.7400-0.7600 range in the absence of any further directional catalysts.”
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