🎈📊Macro Sentiment Supports Further AUD/USD Downside: Cable FX Macro

• A spread of economic surprise indexes from Australia and the U.S. is extending lower, data compiled by Citi shows. The differential is now at the lowest since October

• The amount of the U.S. economic outperformance vs Australia sits in line with AUD/USD trading below 0.6400 and the AU10Y-US10Y spread in negative readings (USD yields favoured)

• A hawkish RBA and Tuesday’s Treasury bid has taken the 10-year yield spread to 4.2bps from -6.3bps

• Both Fed and RBA have presented a hawkish posture, however, the chart below shows the Fed is backed by data more than the RBA