AUD/USD: Broadly fairly valued around current levels – Deutsche Bank

Research Team at Deutsche Bank, sees AUD/USD as broadly fairly valued around current levels. 

Key Quotes

“This suggests we will need to see (inter alia) a further re-pricing of Fed expectations to push AUD/USD much lower; and/or a return to an expectation of RBA easing in the local market. Within the peripheral dollar bloc we continue to see relative commodity prices having a significant influence on crosses. Given the difficultly in forecasting relative commodity price movements, we are currently inclined to wait for $-bloc crosses to be misaligned on both a rates and a relative commodity price perspective before expressing strong trade ideas.”