AUD Gains More Intuitively Clear - BBH
Research Team at BBH, suggests that the Australian dollar's gains appear
more intuitively clear after the minutes from the recent RBA meeting
indicated that it was a close decision.
Key Quotes
“This means that a follow-up rate cut next month is unlikely, which is
what we have argued. While short-term participants may be surprised
today, the medium-term outlook has not changed. It seems likely that the
RBA may still need to ease monetary policy.
The resilience of the Australian dollar yesterday despite the
disappointing data from China, and the follow through gains today, is
notable. If it is sustained, it is likely signaling the end of this leg
up in the US dollar, which began in late April against the Aussie and
May 3 for most of the others. The Australian dollar's upside momentum
eased in the European morning, so the key to the outlook may be the
shape and magnitude of the pullback. Ideally, the Aussie holds above the
$0.7280-0.7320 band.”
