Analysts at Nomura explained that AUD has touched a multi-year high, and market participants are seemingly willing it to break higher.
"From a fundamental perspective, we remain of the view that the rally in the AUD/USD is on shaky foundations, and the market looks to be pricing in too much positivity on the AUD side and across broader risk markets."
"Rather than lean against the current move in spot, which is susceptible to a further near-term squeeze higher, we think optionality is preferable.
We enter an AUD/USD 2m 0.7670/0.7530 put spread."
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