ANZ Research discusses AUD outlook and maintains a bearish bias tactically and structurally. ANZ Targets AUD/USD at 0.68 by end of Q1
"The domestic data are likely to remain below par, and we do not think that the international environment will provide a positive backdrop for much longer. Growth is slowing and liquidity is tighter,' ANZ notes.
"The market’s perception of the policy balance of risks has tilted in the past couple of weeks, as data disappointed and the RBA highlighted a risk distribution that was more seriously weighted to the downside. This week’s data is unlikely to shift these views. If anything, they will consolidate them. NAB Business Confidence will likely remain close to the last weak reading. Also, housing finance will show that the outlook for the housing market is a real concern for the outlook. In this light, the details in the monthly consumer confidence numbers will also be telling. The ‘good time to buy’ index has been improving of late," ANZ adds.