AUD/USD is consolidating near the top-end of its year-to-date 0.6100-0.6330 range, BBH’s FX analysts note.
“Australia’s Westpac–Melbourne Institute Consumer Sentiment Index was essentially unchanged at 92.2 in February. While the headline print remains below the long-term average of 100.5, the forward-looking sub-indexes edged higher.”
“Regardless, softer inflation pressures in Q4 support the case for the RBA to start easing at the next February 18 meeting, with markets pricing-in a 90% probability.”
“RBA/Fed policy trend and sluggish Chinese economic activity point to additional AUD/USD downside.”