Barclays Research discusses AUD/USD outlook and adopts a neutral bias in the near-term.
"The AUD is likely vulnerable to any reversal in risk sentiment or lower commodity prices, especially after its recent outperformance...RBA Governor Lowe reiterated patience last week by noting that the RBA won’t respond until seeing the evidence of pervasive price pressure. Market pricing continues to rise, with 1y RBA OIS climbing 31bp last week to 2.11%," Barclays notes.
"AUDUSD climbed to the highest levels in four months on support from rates repricing, rising commodity prices and a broad improvement in global risk sentiment. We expect AUDUSD to consolidate in the near term before resuming uptrend in H2," Barclays adds.