AUD to remain supported against the Chinese yuan - Westpac
|Martina Song, Research Analyst at Westpac, expects the AUD to remain supported against the Chinese yuan over the next month, to around 5.19.
Key Quotes
:We expect the RBA to remain on hold. Inflation in Q3 should not be weak enough for the RBA to cut at their November meeting. Commodity prices at present are also supportive of the Australian dollar.
There should be little further monetary easing from China as well, given concerns around growth in property prices. USD/CNY/CNH however has been more sensitive to US dollar movements since the National Day holidays. A stronger greenback going into the December Fed meeting should keep USD/yuan elevated.
Beyond this however we see prospects for the US dollar weakening. This should keep USD/CNY upside limited into year-end. Meanwhile, softening commodity prices should weigh on AUD/USD by December.”
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