TD Research maintains a bearish bias on AUD, expressing that via holding a short AUD/USD exposure targeting a move towards 0.6175.
"Risk appetite started the week on a solid footing amid hopes the global economy may be starting to show signs of recovery. This backdrop has put the USD on the defensive but it has had a decent run in recent weeks. Despite this, the bond market is not really buying into this sudden burst of enthusiasm. We tend to agree with that assessment of the underlying situation facing the global economy," TD notes
"Our skeptical attitude toward this bounce in risk keeps our focus on the AUD. With AUDUSD’s persistent correlation to global equities, we think any correction there will also be seen in the FX market," TD adds.