Summary

• While AUD has made some gains against major currencies over the past one and three months, the longer-term trend has been negative
• The continued soft outlook for AUD is underpinned by weaker domestic economic data, dovish RBA and mixed outlook for commodity prices
• Volatility of AUD against JPY and Swiss Francs stand out
• The USD Index continues to display an uptrend despite the shift in Fed Reserve policy stance
• The British Pound index continues to experience heightened volatility as ‘Brexit’ drama continues in UK