AUD: Further Downside Vs USD & NZD On Positioning Squaring - Credit Agricole

Credit Agricole FX Strategy Research notes that in G10 FX the AUD was among the weakest currencies over the past few sessions.

This, according to CACIB,  appears to be mainly on the back of the Fed keeping all options regarding higher rates as soon as in June open and as data out of China indicates weaker services sector related business activity.

"We basically stick to the view that the AUD may face more downside risks, for instance against the USD and the NZD. This is also due to speculative long positioning remaining elevated and that keeps position squaring related downside risks firmly intact," CACIB argues. 

AUD/USD is trading circa 0.74 as of writing. 

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