AUD/USD: Aussie to be well supported in view of hawkish RBA – Commerzbank
|The Australian labour market data for May published yesterday was much better than expected. Economists at Commerzbank analyze AUD outlook after the report.
Surprise rise in employment in Australia fuels rate hike expectations
Employment rose by an impressive 75.9K MoM. The data is likely to add to the Australian central bank’s (RBA) concerns that inflation remains stubbornly at high levels.
The market expects the RBA to take countermeasures and to further hike the key rate compared with the current 4.1%.
Against this background, it would seem that the Aussie, which yesterday also benefitted from a weakening USD, will not continue to rise endlessly. Seeing that the Fed seems willing to implement further rate hikes despite the recent pause we consider AUD to be well supported though in view of an also hawkish RBA.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.