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What is the outlook for AUD/USD?

Here is their view, courtesy of eFXdata:

Credit Agricole CIB Research flags  a scope for a downside correction in AUD/USD from the positioning and valuation front.

“Our FAST FX and Positioning models suggest downside risk for AUD/USD. The primary model for AUD/USD in our FAST FX model estimates that  the exchange rate’s short-term fair value was 0.7468  at the end of last week and that the exchange rate was more than 1.5 standard deviations above this fair value,” CACIB notes.

“Our  positioning indicator  also suggests that the AUD is trading in strongly overbought territory. So,  position squaring-related downside risk remains high,” CACIB adds.

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