In view of analysts at Westpac, AUD has absorbed a lot of negative news over the past week, with the RBA cutting the cash rate and indicating more to come, Australia’s soft GDP growth disturbingly reliant on government consumption spending (investment remains oddly weak).
Key Quotes
“The US and China continue to trade insults but markets will at least hope that both remain willing to talk as the end-June Osaka G20 draws closer. But AUD’s domestic woes seem set to persist. While business and consumer sentiment surveys might improve post-election, we look for the unemployment rate to remain at 5.2% in May, leaving the RBA pondering how much more it needs to deliver.”
“The slide in US yields and the US dollar are propping up AUD/USD for now, but multi-week we expect a return to the 0.68 area.”
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