AUD: Mildly bearish for the week ahead - ING

Analysts at ING explain that AUD has moved lower as lingering hopes of a hawkish RBA surprise were dashed and is expected to trade mildly bearish for the week ahead.

Key Quotes

“The RBA stuck to its cautious guns and took a slightly less positive outlook by dropping explicit expectations for +3% growth. The AUD moved lower as lingering hopes of a hawkish RBA surprise were dashed. Next big litmus tests for the economy are the Jun jobs report (20 Jul) and 2Q CPI (26 Jul).”

“Increasing supply and risks of steel-related protectionist policies may see iron ore prices move lower in the short-term. The Australian government expect prices to average at US$49.10/t in 2018, which is AUD negative.”