Goldman Sachs on the Australian dollar, they have been recommending AUD longs but recognise Lowe's speech last week 'signalled imminent easing'
- and thus their view could be frustrated by easing expectations ahead of RBA's 2 November meeting.
It has been today for sure with Kent and the minutes further taking the wind out of the AUD.
However add GS:
- That said, the risk backdrop over the next few weeks could quickly turn more AUD-positive if we remain on track for vaccine approval by year-end and we see a Democratic sweep in the US elections, both likely to become clear before the next RBA meeting in mid-November.
And, for clarity, the next RBA meeting is November 3, not mid-November