AUD: Further consolidation is likely – ANZ

The AUD has been one of the weakest performing G10 currencies over the past weeks and is likely to continue to be driven by broader USD moves and sentiment in the commodity space, suggests the research team at ANZ.

Key Quotes

“Both, at this stage, suggest some further consolidation is likely. On the domestic front, Q4 capex data (especially the plant and machinery component which feeds into GDP) should rise strongly confirming that growth remains on a solid footing. This could ultimately provide some momentum to the AUD. The ongoing political issues related to dual citizenship will remain, however, a point to watch.”