AUD is supported as markets continue to imply a shallow RBA easing cycle (roughly 50bps of easing over the next 12 months), BBH's FX analysts report.

More strength in the economy can delay or derail the disinflation process

"RBA Governor Michele Bullock stressed again that 'the Board remains cautious about prospects for further policy easing.' Bullock noted that strong employment growth could be 'signaling a bit more strength in the economy, which could delay or derail the disinflation process.'"

"Supporting the RBA’s cautious guidance, Australia’s composite PMI improved to a six-month high at 51.2 vs. 51.1 in January."