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It has become evident that any further downside in the aussie, which was driven by global events, is set to be backstopped by highly reactive central banks while the topside will be closely watched by the Reserve Bank of Australia (RBA), economists at ANZ apprise.

Key quotes

“The AUD is likely to continue trading alongside the ebbs and flows of global risk appetite. The key driver being the arm wrestle between the trajectory of global growth and central banks actions. We expect this tussle to take place around fair value, with the AUD trading in a 10c range around USD 0.70 cents.” 

“Significant downside will be protected by very active global central banks, the topside capped by the RBA.”