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.”
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