AUD/USD constructive above 0.7270 – BBH

I view of analysts at BBH, the outlook for the Aussie dollar remains constructive while above 0.7270.

Key Quotes

“Recently, the Australian dollar has been leading the other majors. The Aussie peaked on April 21 (~$0.7835), while the other majors did not peak until May 3. The Aussie bottomed on May 24 (~$0.7145). The other majors did not bottom until May 30”.

“An upside correction should be expected in the period ahead. The first target is a little above $0.7400 and then $0.7500”.

“We do not expect the RBA to cut rates, but if it does, the Australian dollar needs to hold around $0.7270 to keep the constructive outlook intact”.