ANZ Research discusses AUD/USD outlook and maintains a cautious bias, expecting a sustainable break below the 0.70 level in Q1.
"In recent months the AUD has been a victim of global sentiment, with much of its range defined by market volatility rather than domestic dynamics.
There is a risk, we think, that over the next couple of weeks the market will refocus on the domestic pulse. Key data releases will arrive ahead of a substantial update from the RBA, all of which will add a new element to the downside bias of the AUD," ANZ notes.
"We remain cautious. We still like the long-dated bearish option structures we recommended late in 2018, and we retain our forecast that the AUD will sustainably break USD0.70 this quarter," ANZ argues.