AUD: Disconnected from the commodity complex - ANZ

Analysts at Australia and New Zealand Banking Group (ANZ) offer their take on the Australian dollar amid the recent strength in the commodity prices.

Key Quotes:

“Strong commodity prices have failed to support the AUD, as the traditional multipliers of higher resource prices into the economy have weakened.

To be an outright positive for the AUD, China’s stimulus measures will need to do more than support commodity prices.

Reversing the AUD fortunes will require a more substantial shift in China’s growth trajectory and we think this remains a low probability outcome.”