AUDUSD: Limited scope to break significantly above 0.77 - BNPP

Strong risk appetite and global equities’ outperformance continue to support commodity bloc FX and following a sharp rise in iron ore prices, AUDUSD has risen to its highest level since the US election notes research team at BNP Paribas.

Key Quotes

“However, with the market long the AUD (at +32, the highest score since 2012), we see limited scope for AUDUSD to break significantly above 0.77. Our commodity strategy team expects oil prices to retreat in the coming weeks given questions about the sustainability of output cuts.”