The Australian dollar had a wobble following the announcement about a change in the seasonal adjustments to the employment data and after the RBA decision.
What’s next for the Aussie? Credit Agricole says that a correction risk is intact.
Here is their view, courtesy of eFXnews:
Stable RBA monetary policy expectations should leave the AUD driven by external factors such as global risk sentiment and Fed monetary policy expectations.
This is especially true as the central bank appears to be somewhat less cautious when it comes to the currency’s high valuation. Although the central bank still regards the AUD as being high by historical standards it refrained from calling it overvalued according to most fundamental estimates.
Looking ahead, we anticipated further upside correction risk. First of all we see scope of Fed speakers sounding more cautious this week.
This is mainly due to a high USD’s dampening impact on inflation expectations, which have been falling during the past few weeks. Accordingly we advise against selling AUD/USD around the current levels.
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