On a three-month view the AUD has gained over 8% versus the USD. Currency strength is clearly not a desired outcome for the Reserve Bank of Australia (RBA) which may bolster the size of its QE programme, sending the AUD/USD pair below the 0.8000 level again, Jane Foley, Senior FX Strategist at Rabobank, briefs.
“Speculation has appeared that the central bank could tweak the size of its asset purchase programme again. Such an outcome at next week’s policy meeting could push AUD/USD comfortably back below the 0.80 area in the immediate term.”
“Over the medium-term, trade tension between China and Australia in addition any reining back of expectations regarding the global recovery are likely triggers for pullbacks.”