AUD cheap relative to Australia’s still solid commodity export prices - AmpGFX

The US wages data and trade policy announcements that may come before end week will keep global markets on edge.  

Key Quotes:

"There is scope for a corrective bounce in EM assets, but the prospect of further US rate rises and an escalation of the US-China trade war may hang over global markets for some time."

"The Australian GDP report was much stronger than expected, rising at an annualised 4.1% in H1, well above the trend growth rate of 2.75%, suggesting that the economy has significant momentum."

"Global and domestic risks to growth have become more elevated, but the economy appears reasonably placed to take a few punches."

"The AUD has built in a discount for these increased risks and is cheap relative to Australia’s still solid commodity export prices, helping support income growth."