Australian dollar strategy from ANZ:
The AUD is trading towards the top of recent ranges (USD0.72-78) but is unlikely to breach this range in our view.
In the near-term, risk appetite is looking stretched and the AUD will struggle to break out in the absence of a renewed leg in the reflation trade. Further out, a stronger USD and narrowing interest rate differentials should see the AUD soften over the course of the year.
We are targeting 0.72 by end 2017.
ANZ targets AUD/USD at 0.78, 0.76, 0.74, and 0.72 by the end of Q1, Q2, Q3, and Q4 respectively.
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