ANZ Research discusses AUD/USD outlook and sees a scope for some support in the near-term, while awaiting to sell such rallies on a medium-term basis.
"As the market sighs relief that the Fed is not tightening itself into a policy mistake the AUD has managed to stage a solid recovery. While in the near term some further unwinding of short positioning could provide a touch more support, we think that the rally is based on unstable foundations and await opportunities to sell," ANZ notes
"In particular, we think that in an environment of still-tight liquidity and a weak global growth pulse outside the US a more patient Fed is not the solution to the more structural problems that the AUD has. For us to more seriously consider revising up our forecast of the AUD we would need to see the global growth pulse stabilise. A rebound in growth and some evidence of the money multiplier turning around in China in particular are preconditions to us becoming more bullish," ANZ adds.