AUD to consolidate near its 200-DMA ahead of a BIg week - CBA

Commonwealth bank of Australia (CBA) out with its latest note on the AUD, citing key catalysts that will drive the currency this week.

Key Points:

Will consolidate near its 200-day moving average (0.7527) this week

A softer USD later in the week and favourable Chinese May economic activity (industrial production, retail sales and fixed asset investment) (Wed) will underpin AUD/USD

But unimpressive Australian employment conditions (Thu) will limit AUD/USD upside. We are forecasting a flat outcome for employment in May. Importantly, we will monitor if total hours worked rose in May for signs Australian labour market slack is shrinking.