Maybank FX Flash - AUD: Corrective Bounce in Play

AUD: Corrective Bounce in Play

§ Sep labour report was not as bad as the headline. Labour market still sees some slack but little that alludes to a sharp deterioration on the hiring front. § Two days ago, RBA left cash target rate unchanged at 2.50% and still desires a lower AUD. On the other hand, the bar for rate cut is high given the rising home prices. That pared expectations for a near-term rate cut and sent the AUD further north. § The confluence of the recent RBA statement, less worrying labour report as well as a Fed that does not want to trigger a rise in rates so soon could mean an opportunity for a tactical long AUD trade. Our bullish target is seen at 0.9054 with stoploss at 0.8794. Risk reward ratio at 1:2.2