AUD/USD: Sell on any rebound back above 0.77 - Natixis

Analysts at Natixis note that the Australian dollar is the currency that has appreciated most against the US dollar since the start of the year.

Key Quotes

“It has benefited from the greenback’s bout of weakness, the improvement in economic activity and, especially, employment, from the rise in iron ore prices to almost US$81/t, stoked by significant Chinese imports.”

“This week, with inflation being expected to have rebounded to 1.6% in the last quarter, this ought to push up the AUD/USD to 0.77, at which level we would turn sellers of the pair, bearing in mind the US dollar will end up recovering and that iron ore prices are likely to fall back sharply this year.”