Can RBA completely rely on Fed's help?

AUD/USD performance after the US labor market data is likely pleasing the Reserve Bank of Australia. However, its plans are not working completely.

There are reasons to be positive that Federal Reserve doing some of RBA's work for it, and it might push AUD/USD near 0.70, with the support of the December lift-off. The fundemental reasons for selling AUD in domestic front are starting to run out.

In its statement in early November the RBA sounded quite neutral as commodity prices have stabilised, concerns about collapsing growth in China have eased and domestic data is looking positive. 

The labour market in particular is on the right path, almost 59k new jobs were created in October, 2/3 of which were in the full-time sector and the unemployment rate eased to 5.9%. 

"However, the RBA will not be able to tolerate notable AUD appreciation as it could endanger the inflation outlook. For this reason it left the door open for a further rate cut at the meeting in early November should the inflation outlook deteriorate again", says Commerzbank in a research note. 

The RBA can hope the Fed will help it but cannot rely on it completely.