MUFG Analysis sees a scope for AUD to remain supported round this week’s AU This fall CPI print.
“The Australian greenback has clearly benefitted from constructing optimism
over a stronger rebound for China’s financial system this yr. It has already
lifted the AUD/USD charge again above the 0.7000-level for the primary time
because the summer season of final yr. The current strengthening of the
Australian greenback has been supported by beneficial phrases of commerce
developments for Australia,” MUFG notes.
“It comes forward of the discharge tomorrow of the most recent Australian CPI
report for This fall which is anticipated to indicate that inflation has not but
peaked in Australia. A stronger report might present one other
tailwind for the Australian greenback by reinforcing expectations for
one other 25bps hike on the RBA’s subsequent coverage assembly on seventh February,” MUFG provides.