Scope for further AUD strength as RBA refrained from Mentioning FX - MUFG
What's next after the RBA:
MUFG Research flags a scope for a higher AUD in light of this week's RBA July policy meeting.
"It was also notable that the RBA did not mention the Australian dollar in contrast to the RBNZ's latest policy update. It suggests that the RBA is less concerned by the stronger Australian dollar. In recent comments RBA Governor Lowe noted that it is hard to argue that the Australian dollar is overvalued," MUFG notes.
"It leaves room for the Australian to strengthen further in
the near-term. The next key resistance levels are at 0.7000 and then the
10th June high at 0.7063," MUFG adds.