AUD continues to trade heavily - Nomura

The AUD has continued to trade heavily this week as the Q3 wage data suggest that excess slack remains and the subdued inflation backdrop should continue to keep the RBA sidelined, explains the research team at Nomura.

Key Quotes

“More broadly, the moderation in industrial metal prices and the risk backdrop remain AUD headwinds. We see EUR/AUD continuing to move higher over the next couple of weeks. Historically there is a tendency for EUR/AUD to appreciate over December.”