UOB Group: AUD/USD to rebound

United Overseas Bank analysis team suggests that over the medium term, further de-escalation of US China trade tension, coupled with broader rebound in commodities prices will likely lead to a rebound in the AUD/USD pair.

Key Quotes

“Since late last year, bulk commodities and industrial metals have tracked higher, leading to further strength in RBA’s Commodity Index and this is positive for Australia’s terms of trade. As such, we maintain our positive view on the AUD/USD, looking for modest strength towards 0.77 by end 2019.”