AUD: Domestic policy moves becoming critical to outlook – ANZ

Daniel Been, analyst at ANZ, suggests that further AUD weakness is increasingly contingent on the RBA easing policy in 2020.

Key Quotes

“While a trade resolution looks well priced into risk assets in the very short term, an impending improvement in global growth would provide a solid base for risk as we move into the first quarter.”

“If the RBA remains focussed on reducing spare capacity in the domestic economy and ease further, then the AUD will react strongly, likely testing USD0.65.”