• The clarity provided on the FOMC’s intentions with regard to dialling down QE greatly improves our confidence in the AUD/USD downtrend being sustained.
• Though AUD weakness may have been compounded by its use as a liquid proxy hedge against broader asset market exposures (in EM especially) latest moves have still not caught up with what key fundamental drivers suggest is justified – and which are liable to move further in the direction of a weaker AUD.
Read the full report: Market Research
NAB