Forex Flash: AUD outlook is broadly neutral - Wells Fargo

Nick Bennenbroek of Wells Fargo notes that his outlook for AUD/USD has shifted from mildly positive to broadly neutral.

He feels that while the global environment remains benign, local factors have turned less supportive. He writes, “With growth and inflation subdued the central bank has an easing bias, suggesting possible rate cuts in the coming months. Given already extended FX positions, the Australian dollar could struggle to strengthen, and may also be susceptible to downside shocks.”