In comments mainly on the Federal Reserve and Powell overnight, CBA had some comments on the Australian and New Zealand dollars
AUD:
- domestic economic data improving, supporting it
- was oversold
(ditto for the NZD)
On the Fed:
- Powell reiterated that the Fed / FOMC is data dependent
- CBA's view is that the Fed is rate is just under neutral
- CBA says neutral rate is 2.6%, December hike brings Fed to 2.5%, just under
On the USD
- CBA says growth slowing in Europe, Japan, China to support the dollar
Yuan and China:
- Yuan weighed on by difference between 2 year rates in China and US
- China to allow an order fall for the yuan
