AUD/USD: Momentum has the potential to remain strong in the short term – CitiBank

Analysts at Citibank see the current environment could help the Australian dollar. They forecast AUD/USD to trade at 0.72 in a 0-3 month period and at 0.73 in 6-12 months. 

Key Quotes:

“AUD have experienced a remarkable rally as they trade high beta to risk on. This momentum has the potential to remain strong in the short term, as AUD CFTC positioning is net short. The economy continues to be supported by a large amount of fiscal stimulus and Citi’s soft data index looks to have bottomed.”

“AUDUSD’s RSI retreated from overbought territory. The pair may find resistance at 0.7063-0.7082 in the short term and consolidate between 0.6665-0.7063 with next support at 0.6486.”