The Aussie has managed to bounce off the lows from yesterday. Analysts at TD Securities believe AUD/USD strength should fade.
“AUD managed to bounce off 0.6250 support from yesterday in what has been great reluctance to trade lower. We think that strength should be faded overall here as AUD/USD however, as rallies above 0.6350 have been met with some selling interest.”
“We see better prospects for AUD/NZD upside than vs. the USD however, where any rebound in Asia will be better observed in the AUD-leg.”
“The move in AUD has been more closely tied to gold than other markets, however. The link here is intuitive and with rampant monetary/fiscal stimulus and depressed real yields, that might be a more persistent link.”