CBA (their morning note) attribute the Australian dollar fall the past 24 hours to "iron ore prices, base metal prices and precious metal commodity prices declined, driven partly by the firmed USD"
What now?
- We don't believe AUD/USD will fall much further given the synchronised global economic growth is likely to support commodity prices and USD upside is limited in our view
- AUD is also set to gain support from the improvement in Australia's current account deficit, currently 0.9% of GDP, and set to average 0.6% of GDP over 2017
For today's data:
- Today's Australian intemational trade data for March is expected to show a large $3.256 billion trade surplus, supporting the current account improvements
- AUD/USD is currently trading at a three-and-a-half month low, generating attractive level for exporters and a buying opportunity for institutional investors
(bolding is mine)
