FXStreet (Edinburgh) – Strategist Sean Callow at Westpac sees spot marching south in the near term, towards the area of 0.7500.
Key Quotes
“AUD/USD has closed above 0.80 on only 5 days since January. The most recent occasion was 15 May”.
“This already seems like a long time ago, with a return to the 0.75 region looking a lot more likely than any renewed rally towards 0.80”.
“The local focus of last week’s slide was the dismal capex data. AUD commenced its decline on the headline -4.4% q/q drop in actual business investment in Q1”.
“Yet the component that feeds into this week’s GDP report is plant & equipment, which printed -0.5% q/q, nothing to change Westpac’s forecast for 0.6% q/q, 2.0% y/y on GDP”.
“There remains no tension over the RBA’s decision on the cash rate on Tue, with neither June nor July seen as “live” for a change in rates”.
“But the tone of the statement will be watched closely. The RBA is hardly likely to swing from the overall cautiously upbeat tone of May to deep pessimism 4 weeks later, but it might clarify at least a ‘soft’ easing bias”.
(Market News Provided by FXstreet)