TSF figures losing relevance for Australia
The RBA minutes overnight affirmed the effects of expansionary policy but warned the economy was below-trend. Yet, optimism is tempting: Australia’s data surprises have generally been on a six-month uptrend, and expectations may run high for a further export boost in the wake of China’s record total social financing numbers (TSF). While this position has merits, we expect TSF numbers’ impact on AUD to be marginal at best: the burden of price action should continue to mostly fall on domestic developments.
Read the full report: UBS