ANZ reckons there are five reasons to buy AUD:
- USD is due for a correction
- Risk sentiment remains supportive
- RBA still on track to hike in 2018
- Outlook for iron ore remains positive
- Technicals bode well
Given these five indicators, we think that any downside surprise in domestic data should be used as an opportunity to buy the AUD on dip.
Lets examine these.
- Is the USD due for a correction? According to the BofAML fundy survey, the short USD trade is still pretty crowded: