25 Mar 2016
Recent AUD surge is consistent with high yields and buoyant commodity prices - TDS
Research Team at TDS, suggests that the Australian housing, employment and sentiment remain solid while key commodity prices have accelerated in recent weeks.
Key Quotes
“GDP closed 2015 at an above-trend 3% annual pace, with mining shrinking and services expanding. The recent AUD surge is consistent with high yields and buoyant commodity prices, and so not a concern for the RBA just now.
AUD at $US0.759 near fresh 2016 highs due to delayed and diluted Fed hikes, a surge in risk appetite, and a commodity price revival. We have subsequently upgraded our near-term AUD projections, supported by a steady RBA. China risks appear low just now but we remain a headline away from a return to market volatility.”
Key Quotes
“GDP closed 2015 at an above-trend 3% annual pace, with mining shrinking and services expanding. The recent AUD surge is consistent with high yields and buoyant commodity prices, and so not a concern for the RBA just now.
AUD at $US0.759 near fresh 2016 highs due to delayed and diluted Fed hikes, a surge in risk appetite, and a commodity price revival. We have subsequently upgraded our near-term AUD projections, supported by a steady RBA. China risks appear low just now but we remain a headline away from a return to market volatility.”