AUD trading below fair value, but view for week ahead is mildly bearish
A snippet on AUD/USD via ANZ. Analysts out fair value for the Australian dollar at 0.70.
- While an easing of geopolitical risks and globally accommodative policy have been supportive, a globally synchronised uplift in growth will be required to see the AUD lift much above current levels.
- Low domestic yields will also hamper the AUD in the medium term, as the currency loses carry characteristics.
Week ahead outlook is mildly bearish.
- Month ahead outlook is neutral.