Societe Generale Research discusses AUD outlook and likes a tactical bullish bias vs USD, EUR, and NZD.
"AUD/USD bounced this morning on the back of short-covering after the RBA Governor indicated policy isn't changing any time soon. The market consensus has been bearish AUD for a while and we've argued a few times that it's too weak to sell. Positioning and sentiment are both helping make it at attractive way to position for at least temporary improvement in Chinese data," SocGen notes.
"AUD/NZD longs are back in fashion and while we've been pushing EUR/AUD shorts, it's not a bad moment for an AUD/USD long, too," SocGen adds.