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AUD/USD is currently testing the 0.600 level on a resumption of USD strength stemming from risk aversion connected with bad economic news from the US and Europe, per Rabobank.

Key quotes

“AUD/USD had held above 0.60 for around a week into early April, having briefly touched a low of 0.5510 on March 19.  While well off its lows, the AUD remains the second worst performing G10 currency over the past month.” 

“Even though Australia managed a small current account surplus last year, the AUD has historically been the G10 currency most sensitive to a souring in risk appetite.”  

“We anticipate that the USD will remain well bid through the duration of this crisis and see risk of further sharp moves lower in AUD/USD back towards the recent lows before the pandemic has peaked.”  

“We see risk of the AUD/USD dropping again on a 3 month view towards 0.55.”