AUD/USD is consolidating above 0.6258 – BBH

AUD/USD is consolidating above last week’s lows near 0.6258, BBH's FX analysts report.

Markets continue to fully price-in the next 25bps cut in July

"Australia reported firm preliminary March PMIs. The composite PMI improved to a seven-month high at 51.3 vs. 50.6 in February. Manufacturing surged to a 29-month high at 52.6 vs. 50.4 in February and services rose to a two-month high at 51.2 vs. 50.8 in February."

"Importantly, the rate of private sector job creation increased for a third straight month amidst the solid rise in new work. This suggests that Australia’s poor February labor market data may be an outlier rather than a sign of broader weakness. Cash rate futures continue to fully price-in the next 25bps cut in July with 70% odds it will occur at the May meeting."