An A-list appointment to head the RBNZ, higher public spending and rising inflation may not be enough to make up for a fading carry trade and continued political risk next year.
The Reserve Bank of Australia appears more bullish on the Australian economy but price action in US Treasuries will matter as much for the Aussie Dollar in December.
The US Dollar remained broadly unchanged after the release of inflation data on Thursday, which showed personal consumption (PCE) rose by 0.1% month-on-month in July and 1.4% year-on-year (YoY).
The outlook for commodity prices may be the key factor influencing the direction of the Australian Dollar, according to the views of leading FX analysts.
The Australian Dollar is set to weaken over the next year-and-a-half as commodity deflation, an underemployed work-force, high levels of debt and unprofitable banks weigh on the outlook.
The Australian Dollar rose temporarily after strong employment data boosted the outlook for the economy on Thursday but those gains proved ephemeral after it became clear most of the job gains had been part-time.
The Australian Dollar lost over 0.80% versus the US Dollar after the release of inflation data showed price growth undershot analyst’s expectations in Q1.
A report from the Australian government has given a negative forecats for iron ore - but is the report really that negative about Australian trade in general, and what are the implications for the exchange rate?
The Australian Dollar is likely to weaken over the medium term because of the twin effects of a fall in Chinese demand for Australian commodities and slowing wage growth.
Iron Ore traders were the most pessimistic group in a recent survey of commodity practitioners by international commodity and financial services conglomerate Macquarie.
Labour market uncertainty, stubbornly low wages and volatility in commodity prices are expected to keep the Australian Dollar under pressure until the end of 2018 say analysts at Aussie lender Westpac.
Positive economic data, showing a still-buoyant housing market has sparked a recovery on AUD/USD after it reached support from a cluster of moving averages in the 0.75s.