AUD to break higher? - Nomura

Analysts at Nomura point out that AUD has touched a multi-year high, and market participants are seemingly willing it to break higher.

Key Quotes

“From a fundamental perspective, we remain of the view that the rally in the AUD/USD is on shaky foundations, and the market looks to be pricing in too much positivity on the AUD side and across broader risk markets. Rather than lean against the current move in spot, which is susceptible to a further near-term squeeze higher, we think optionality is preferable.”