Support for the AUD at current levels

The weaker than expected non-farm payrolls outcome for the month of May has led interest rate futures markets to scale back expectations of the timing around further rate hikes in the United States. In an environment where many of the world’s major central banks are resorting to the use of negative interest rates and other unconventional monetary policy instruments to stimulate activity, and combat disinflationary forces and the shortfall in aggregate demand, the Australian dollar should be well supported at current levels.