"The correction in AUD/USD between early March and the May low sliced 10% from the value of the aussie. The move was underpinned by the recent 50 bps rate cut from the RBA and by expectations that the central bank could act again. The June 5 RBA policy meeting is fast approaching and the market is priced for a 25bp cut. In contrast we expect no policy change. If we are correct the market could find increased reason to buy back a few AUD vs. the USD. AUD/EUR has been pushed higher since mid-May. We would be buyers on dips towards the February low near AUD/EUR 0.7925." Jane Foley, senior currency strategist at Rabobank International.
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