ANZ Research flags a scope for AUD to consolidate its recent gains in the near-term.
"As a global growth proxy, the AUD has benefitted from re-opening and the swift and explicit policy support from global central banks. With the economic rebound largely priced in, market attention will now shift to other drivers...We think it’s unlikely that the market’s growth assumptions will be challenged in June," ANZ notes.
"The recent price action, although now at tactical extremes, is more likely to consolidate than materially fall. The near-term risks to the AUD arise from US-China tensions. Our year-end target remains significantly below current levels, reflecting the growth challenges that await when businesses open once again," ANZ adds.