AUD: External conditions hold the key amid neutral RBA - ING

The RBA meeting was a non-event as expected, with the central bank retaining the same cautious commentary over a strong AUD, notes the analysis team at ING.

Key Quotes

“Domestic data focus this week will be on the August jobs report (Thu); we note Governor Lowe's speech last week had a blend of caution mixed with optimism, and the latter stems from diminishing labour market slack leading to higher wage inflation. After a negative full-time employment release in July, we'll be looking to see if this bounced back last month.”

“Elsewhere, we get the RBA's Debelle speaking (Thu). though we expect no deviation from the current dovish-neutral policy bias. External conditions continue to drive AUD/USD; US data will matter here, though expect any support to be more of a short-term reprieve for the USD, rather than the start of a broad-based recovery.”