JP Morgan on the AUD, the Australian election, and the RBA
JPM ahead of this weekend's election in Australia:
- JPM point to history showing limited AUD rebound after the Federal election
- AUD rally is less following a change of government, also if a Labor government is elected
(Note, Labor is in opposition now and are ahead in the polls, but it is close)
On the RBA, JPM are tipping August and November rate cuts from the Bank. But acknowledge the risks of a nearer term move have risen following yesterday's employment data. Even say the RBA has enough data to justify a cut on June 4.