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ANZ write "the RBA has begun a fresh.........>

AUSSIE
AUSSIE: ANZ write "the RBA has begun a fresh easing cycle, and we now expect the
Fed to follow suit, despite respectable levels of growth in the US. We expect
that AUD rates will out-perform and the Australian rate structure will remain
below the US for the foreseeable future. Absent a more sustained deterioration
in financial conditions, the Fed is unlikely to ease as soon as the market
hopes. However, the Fed's increased focus on the inflation undershoot means it
will have little tolerance for volatility should it manifest. We remain
comfortable with our forecast that the AUD will trough at USD0.65 in 2019.
Though the upside risks to that have risen a touch."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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