Bank of America / Merrill Lynch comments on Australia and the dollar (from a trip note). The bank noting their bearish view but also that is indeed a consensus view. They are correct - and its AUD shorts that is cushioning its decline.
We return from Australia comfortable with moderately bearish view on FX
- But note downbeat consensus
Trade tensions & funding stress dominated discussions
Strong consensus that RBA will be on hold in 2018 and that AUDUSD will be slightly weaker
- Low 0.70s the most bearish view
