My commodities expert Sam is of the view that based on present commodity prices, the AUD/USD should be trading closer to 86 cents than 92 cents so either commodity prices have some catching up to do or the AUD is too high at the moment.
Local banks remain very bullish on the AUD and they are the ones who see most of the flows so there must be a reason behind their confidence.
Something isn’t quite right with this picture but I think we need a bit more information. I remain in the AUD sell-rally camp but am more comfortable selling against the EUR, GBP or JPY rather than the USD.
