On Wednesday, markets seemed to favour the Australian dollar. But economists at ING expect the AUD/USD pair to turn back lower towards the 0.70 level in the coming weeks.

A popular choice, but not for long

“The RBA policy has been a secondary factor for AUD compared to external drivers, and given the recent wide swings in sentiment due to geopolitical tensions, we doubt this will change in the near-term.”

“AUD/USD is attempting a decisive break above 0.7200 at the moment: this could happen within the next few days, but USD strength and multiple external woes for AUD mean that a pull-back to 0.7000 seems more likely in the coming weeks.”