AUDUSD MACROeco + govt bonds. read to understand the chart
Aiming to support employment growth and to provide economic support RBA cut its cash rate by 25 bps to a low of 1% at the july meeting.
The Australian economy grew below trend at 1.8% this was followed by low consumption and income growth.
while increased investments in infrastructure is providing a pick up in activity in the resources sector.
a pickup in growth in household disposable income is expected to remove the uncertainty involves outlook for low consumption. employment growth is continuing strong while wages growth remains low. mortgage rates are at record lows and the housing market is stabilising.
big surplus in trade, while higher petro prices the last couple of month could have supported the growth rate for the H1 of the year.
with stabilising housing market, and further rate cuts that will support the economic conditions " credit markets, employment, consumption and so on..", i expect upside moves for the aussie, while slower growth for the US. AU10Y yield have been moving down, which means an increase in buying of government bonds, and therefore increased demand for aussie dollars.
Long at spot, for the rest of the year, and looking for hedging opportunity at 1:1
The Australian economy grew below trend at 1.8% this was followed by low consumption and income growth.
while increased investments in infrastructure is providing a pick up in activity in the resources sector.
a pickup in growth in household disposable income is expected to remove the uncertainty involves outlook for low consumption. employment growth is continuing strong while wages growth remains low. mortgage rates are at record lows and the housing market is stabilising.
big surplus in trade, while higher petro prices the last couple of month could have supported the growth rate for the H1 of the year.
with stabilising housing market, and further rate cuts that will support the economic conditions " credit markets, employment, consumption and so on..", i expect upside moves for the aussie, while slower growth for the US. AU10Y yield have been moving down, which means an increase in buying of government bonds, and therefore increased demand for aussie dollars.
Long at spot, for the rest of the year, and looking for hedging opportunity at 1:1