Analysts at TD Securities suggest that when it comes to the RBA, talk is cheap and this week will bring the policy decision and its updated outlook.
Key Quotes
“We note that the RBA’s glass half full approach is not credible as wages remain tepid and wholesale funding issues persist. Further, with trade tensions still fluid between the US/China and AUD highly sensitive to CNH gyrations (where recent PBoC actions should slow but not halt the pace of depreciation), this antipode should remain on the defensive in the G10.”
“As such, we think AUDNZD’s topside run may soon be nearing an end. Despite the RBNZ meeting this week in what will likely have some cautious references, this is likely to be more bark than bite. AUDCAD could remain under pressure as a policy wedge remains and the market might try to carry momentum in CAD over potential NAFTA news on autos this week.”
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