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The Australian dollar enjoyed the RBA’s upbeat message of late, as well as good economic data. However, also the Fed was hawkish. What’s next?

Here is their view, courtesy of eFXnews:

BTMU FX Strategy Research notes that the minutes from the June RBA monetary policy meeting released this week revealed an upbeat central bank that did not read much into the slowdown in real GDP growth in Q1.

“The upbeat outlook of the RBA does suggest that if that evidence does materialize the communication of the  RBA may change toward the potential  signal of removing some of the current monetary stimuli.

The current level of AUD/USD certainly suggests FX market participants are expecting that to materialize  over the coming months.  The 2-yeaar swap spread continues to indicate AUD/USD as stretched at current levels,” BTMU argues.

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