Australia: More positive economic backdrop - ANZ

Analysts at ANZ explain that investors have largely accounted for the more positive economic backdrop and the shift in the RBA’s tone, with markets pricing in a full hike over the next year.

Key Quotes

“We think this is as good as it can get at this stage, so risks are asymmetric heading into the labour force report this week. A strong print is unlikely to be enough to spur a rally in the AUD. Evidence of ongoing strength in business conditions should support sentiment but, at current levels, we suggest to sell the rallies on upbeat surprises.”