Bank of America Merrill Lynch Global Research discusses AUD outlook and flags supporting domestic factors for AUD.
"Another country where the policy mix is turning favourable is Australia - policy action is being front-loaded through 50bp worth of RBA cuts, fiscal easing via tax cuts and regulatory easing on housing and banks. It is notable that RBA cuts have not led to a materially weaker exchange rate, potentially due to the offsetting impact of strong terms of trade. However, we recognize that global trade concerns are likely a bigger factor for AUD compared to NOK," BofAML notes.
"A resolution of US-China trade uncertainty is necessary for a sustainable break above 0.70 for AUD/USD," BofAML adds.