By eFXdata — Feb 15 - 04:30 PM
Citi likes selling AUD/USD on rallies in the near-term.
"AUD takes the last spot in FX, and we don't think this is just due to broader USD strength. RBA Lowe comments did not help, noting that monetary policy is currently restrictive and the low chance of a wage-price spiral. However, we suspect that long positioning and interest to reduce positions ahead of Thursday's labor report is exacerbating the move," Citi notes.
"Our trader thinks the market doesn’t want to be outright long USDs here, if anything just waiting to sell at better levels. Given the firm support we have encountered around these levels, he favors taking back shorts here, and looks to resell 0.6970-90 against 0.7025," Citi adds.
Citi Research/Market Commentary