FXstreet.com (Barcelona) - AUD/USD has an extremely strong relationship with the S&P GSCI Commodity Index, displaying even stronger correlations that with the RBA’s own Index of Commodity Prices.
The Capital Economics team, expect the GSCI Index to fall15-20% from its current level, and with it AUD/USD. However, the are keen to note that they “do not expect the RBA to reduce rates further in this cycle following Tuesday’s cut, which should lend some support to the Australian dollar given market expectations.”
The Capital Economics team, expect the GSCI Index to fall15-20% from its current level, and with it AUD/USD. However, the are keen to note that they “do not expect the RBA to reduce rates further in this cycle following Tuesday’s cut, which should lend some support to the Australian dollar given market expectations.”
