Research Team at ANZ, suggests that the recent rally in the AUD has coincided with a basing in commodity prices, but in fact it represents a repricing of global recessionary risk.
Key Quotes
“Growing evidence of a cyclical trough in China’s activity data, together with a cautious Fed, will likely keep risk assets bid, and this will support the AUD.
We upgrade our near term forecasts to reflect some temporary strength, but continue to believe that the AUD will touch a fresh cycle low within the next 12 months.”
(Market News Provided by FXstreet)