From ANZ's weekly strategy piece for FX.

The AUD may be due for a tactical squeeze higher.

  • While the domestic data flow is uninspiring from an RBA rate hike perspective, it remains positive.
  • So with the global environment dominating moves, we see a bit of room for upside. Chinese data is due to turn more positive, the CNY is stable, and EMs look stable for now.
  • With the AUD having borne the brunt of global bears, some reprieve is in order.

ANZ Fair value: 0.70

ANZ describe their bias for the coming week as mildly bullish

And for the coming month as neutral