The aussie is moving around the mids 0.73. In the view of economists at ING, the cautious policy stance of the Reserve Bank of Australia (RBA) is not expected to send AUD/USD lower than 0.73 by year-end.
“The market might have turned somewhat complacent to the wider implications of China’s real estate woes. More concerning developments in this sense are set to hit AUD harder than other pro-cyclicals, given its high exposure to Chinese sentiment.”
“AUD can count on some protection from rising energy prices and looks already significantly oversold.”
“The firmly dovish RBA should not be of any help in the short-term, but we think AUD/USD can close the year around its current levels: 0.73.”