According to analysts at Deutsche Bank, there are positives leaning into the Aussie, but current market perspectives are busy looking at other things, such as trade fears and overly focusing on the RBA’s middling.
Key highlights
Deutsche Bank noted that they’ve developed further confidence from two particular below-the-radar releases recently, namely a further reduction in labour market slack, notably in the third quarter’s underemployment reading, which has dropped even further, suggesting that wage growth should tick up a little higher to 2.75%.
Job creation is also picking up in higher-paying industries, with hiring on the rise for several quarters in a row, which should help to produce upwards momentum in economic growth in the near-term.
Because of these factors, the AUD is relatively low when compared to the Reserve Bank of Australia’s (RBA), and a fully priced-in hike, whenever it comes, could boost the Aussie’s market standing.
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