AUD/USD likely to remain in the 0.6677-0.7082 range – CitiBank

Analysts at Citibank forecast the AUD/USD pair at 0.67 over the 0-3M period and at 0.70 in 6-12M. 

Key Quotes:

“Escalating US-China trade tensions and resulting CNH/ADXY weakness has been a drag on AUD. But, there are already 2 RBA cuts priced in the next 6 months. RBA may just follow other central banks and the Fed may cut rate which would limit the AUD downside risk.”

“AUD/USD tested the level at 0.67 for serval times but rebounded. In the short term, AUD may be traded in a range of 0.6677-0.7082.”

“The market sentiment became positive and the expectation of further RBA rate cuts did not emerge. This may favor the performance of AUD.”

“The US President Trump may tweet more actively to limit the advance of USD which may support AUD.”