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Analysts at TD Securities suggest that the advance reading of Q2 US GDP may offer a more interesting event risk for FX markets and with relative growth expectations repriced and well advanced, the USD may be more responsive to a downside surprise.

Key Quotes

“This could be more important for AUD following an uneventful CPI print. Though we are mindful of developments in the commodity space that suggest a more supportive trading tone for the antipode, AUD’s relationship with relative terms of trade has loosened.”

“Instead, the AUD remains largely deferent to broad USD dynamics, so we rather look to US GDP this week as a potential catalyst.”