The strength in AUD$ is surprising given the the RBA’s decision to hold rates unchanged. While interest rate differentials favor the USD$, the AUD$ appears to be trading on speculation about capital flows. As a result, given Aussie exposure to capital flows related to industrial and base metals, we would expect the AUD$ to trade on speculation about potential for more tariffs.
Additionally, the RBA reported that wage growth has hit a trough and the current account deficit widened to $14bn. Also retail sales missed its forecasted increase: discretionary categories underperformed, and department stores contracted again.
Additionally, the RBA reported that wage growth has hit a trough and the current account deficit widened to $14bn. Also retail sales missed its forecasted increase: discretionary categories underperformed, and department stores contracted again.