In view of analysts at Westpac, AUD has absorbed a lot of negative news over the past week, with the RBA cutting the cash rate and indicating more to come, Australia’s soft GDP growth disturbingly reliant on government consumption spending (investment remains oddly weak).
“The US and China continue to trade insults but markets will at least hope that both remain willing to talk as the end-June Osaka G20 draws closer. But AUD’s domestic woes seem set to persist. While business and consumer sentiment surveys might improve post-election, we look for the unemployment rate to remain at 5.2% in May, leaving the RBA pondering how much more it needs to deliver.”
“The slide in US yields and the US dollar are propping up AUD/USD for now, but multi-week we expect a return to the 0.68 area.”
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.