Analysts at Citibank argue that “much of the good news appears discounted” in currencies from the commodity bloc. They forecast the AUD/USD pair at 0.72 for the third quarter and at 0.73 in the fourth quarter. Key Quotes: “A lot of upside drivers for AUD and NZD (advanced COVID-19 containment, reopening economy and sizeable government and central bank support) seems discounted. This makes both AUD and NZD vulnerable to renewed bouts of risk aversion should US-China and AustraliaChina tensions escalate. Taking a longer term view, the prospect of the RBA keeping its current ultra-low policy rates for an extended period and Reserve Bank of New Zealand potentially entertaining negative rates means further extensions of recent gains look unlikely.” “There seems to be a lot of oil-related bearishness priced into CAD and the trade weighted CAD looks to have found support around the lows of the last oil price collapse. At the same time however, Citi analysts’ forecast for a significant rebound in 3Q to pre COVID-19 levels is contingent on a sharper economic recovery. Meanwhile, Canadian domestic fundamentals are in a similar place to Australia and while the fiscal / monetary policy response has been robust, as with AUD and NZD, much of this “good news” now appears well discounted into the currency. “ FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next GBP/USD: Bulls testing 1.2500/10 resistance, set-up for failure back towards 1.2470s FX Street 3 years Analysts at Citibank argue that “much of the good news appears discounted” in currencies from the commodity bloc. They forecast the AUD/USD pair at 0.72 for the third quarter and at 0.73 in the fourth quarter. Key Quotes: “A lot of upside drivers for AUD and NZD (advanced COVID-19 containment, reopening economy and sizeable government and central bank support) seems discounted. This makes both AUD and NZD vulnerable to renewed bouts of risk aversion should US-China and AustraliaChina tensions escalate. Taking a longer term view, the prospect of the RBA keeping its current ultra-low policy rates for an extended period… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.