A morning note from NAB on the Australian dollar
These some of the points (in brief):
NAB point to Fridays price fall below "important trend line support'" around 0.7325/50 … "is ominous"
- say had been looking for indications Trump would proceed with the further $200bn tariffs on imports from China next month as a likely catalyst for an AUD drop
- But the fall has come for other reasons well ahead of the tariff confirmation
- Which "bodes particularly poorly"
NAB further cite drivers for the AUD, risk sentiment and commodity prices in particular
- "to generate expectations for a revisit to … lows below 0.69.
- If Trump doesn't pull back on the next phase of tariffs against China, this now looks increasingly likely"
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NAB have been warning on this move for some time.
