AUD/USD: Consolidation in the next quarter – Danske Bank

Economists at Danske Bank expect some consolidation on the AUD/USD pair though there are some risks to the upside. 

Key quotes

“We keep our short-term forecast at 0.60, which remains below the current spot level.”

“We generally think AUD is getting somewhat ahead of where fundamentals anchor the spot and thus expect some consolidation on 1M and 3M.”

“Key upside risks include a decline in broad dollar (not our base case) and upside in the prices of industrial metals.”