It’s been a quiet start for the Australian dollar this morning with the AUD/USD falling fractionally in early Asian trade.
Just after 8am AEST the AUD/USD buys .7013, down 0.09% on Friday’s closing level.
Today the regional calendar is sparse, although that won’t remain the case as the week evolves. As Joseph Capurso, senior currency strategist at CBA, points out in a note this morning, the Aussie is likely to remain supported on the back of upcoming economic data and next week’s RBA October monetary policy meeting.
“We expect AUD to be supported by a more cautiously optimistic RBA after its policy meeting on Tuesday and solid Australian building approvals and Australian retail sales. High levels of home building and a pickup in consumer spending are part of the RBA’s (perhaps premature) cautious optimism about a successful transition towards non-mining investment growth drivers,” notes Capurso.
Despite this, he suggests the factors that have been driving the AUD/USD lower in recent months remain intact…more