AUD/USD: Return to the cycle lows should not be ruled out - TDS

According to analysts at TD Securities, despite positioning still skewed short, the combination of its loss of high yielding status (to the USD most notably), trade exposure and lack of a credible central bank shift suggest AUD will not be as enthusiastic of a participant in the event risk stabilizes.

Key Quotes

“NZD remains the lesser of two evils and a return to the cycle lows in AUDUSD should not be ruled out. We fade moves towards trendline resistance near 0.7350.”