Credit Suisse discusses AUD outlook and adopts a neutral bias over the coming weeks.
"Australia remains a successful Covid-19 containment story, but the lagging vaccine rollout suggests it will no longer be at the forefront of the global reflationary story. We are now neutral and see AUDUSD trading in a range between 0.7415 and 0.7800.
"The terms of trade still validate AUD’s pro-cyclical status: further upside in iron ore prices might however be limited near-term amid concerns of Chinese liquidity draining. Sub-6% unemployment rates also raise the prospect of tapering of fiscal support, after the expiration of the Jobkeeper Act. The 11 May government budget is a key event," CS adds.