AUD should resume its recovery - ANZ

The AUD should resume its recovery as the RBA’s language continues to signal diminishing downside risks to the economy, according to analysts at ANZ.

Key Quotes

 “Despite some recent disappointment, domestic momentum remains solid and labour market conditions are improving at a strong pace. As such, we continue to think that the RBA’s language will evolve in a way that ultimately prepares the market for rate hikes next year. In its SoMP, the RBA will now publish point estimates rather than ranges. This will remove some continuity, but the market will look through that and see that the RBA remains broadly comfortable with the current state of the economy.”