AUD: Monetary Policy is a Key Factor - BBH
Research Team at BBH, suggests that the monetary policy is a key factor in the Australian dollar.
“The rate cut and dovish posture of the RBA has seen accelerated the retracement of the Aussie's run-up in the first four months. Softer employment data keeps the pressure on the Australian dollar. Full-time jobs were lost for the second consecutive month. The participation rate eased while the unemployment rate was unchanged. The point here is that the speculative market is still unwinding a substantial long position accumulated in recent months, and prospects of another rate cut, provides strong encouragement.
The $.7200 area that the Aussie is flirting with is important. A convincing break signals a move to $0.7000, which is technical objective. The low set in mid-January is near $0.6830, and in the bigger picture where we think it is heading.”