AUD: prospects look constructive – TDS

Analysts at TD Securities assessed the prospects for the Aussie Dollar.

Key Quotes

“Strong Australian employment reports for the last four months support the RBA’s cautious optimism and removal of the downside to the wages growth outlook. Retail sales have been stronger than expected, and building approvals have picked up again, in recent months. We maintain that higher rates are ultimately needed to attract offshore capital and address rising household imbalances”.

“We have lifted our AUD profile to reflect greater USD weakness. Commodity prices provide a strong tailwind while interest rate differentials are yet to be a drag on the currency”.