AUD: Alert But Not Alarmed; How To Trade It? – ANZ

The Australian dollar has been trading lower with the recent USD strength, but still seems to look for a direction.

As we enter the summer in the northern hemisphere, the team at ANZ discusses how to trade it:

Here is their view, courtesy of eFXnews:

We are entering that time of year when liquidity declines and the threshold for events to be market-moving is lifted, notes Australia and New Zealand Banking Group (ANZ).

“This could mean that the AUD is set to trade a range, much like it did through the middle of 2014,”ANZ argues.

“However, tail risks are too large to totally ignore; thus we remain alert to risks and ready to sell if better levels present themselves,” ANZ advises.

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