Aussie: seems that RBA is well priced in already - TDS
|Analysts at TD Securities explained that after looking overstretched at 0.7800, the AUD has weakened amid the broad USD rally that began from May 3.
Key Quotes:
"We see a temporary pause in this correction as the fresh RBA easing cycle appears to be well-priced for now and in tandem, while the Fed has rediscovered its hawkishness, we expect the USD to take a breather before resuming a broader extension higher.
A bounce toward 0.7350/0.7400 would be a key reassessment level to enter fresh shorts in our view. Longer term downside risk loom, but we also cannot rule out the AUD overshooting and retesting the 0.6830 January low.
Although we see two-way directional risks overall, nimble investors with a high risk tolerance can take a long AUDNZD position as near-term risks tilt towards NZD underperformance into the expected RBNZ cut on June 9."
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