FXStreet reports that following almost 6-weeks of sideways movement, the AUD/USD market broke through resistance levels around 0.7070-80 (highs of July 2019) and climbed higher. Patrick Bennett from CIBC Capital Markets forecasts the aussie trading at 0.70 and 0.72 by the third and fourth quarter respectively. 

“The driver for gains has been a combination of upbeat messaging from the RBA, demand for Australian bonds by Japanese investors, broad global risk appetite underpinned by policy support and a related weaker USD environment. Considering those positive factors, it is not difficult to anticipate further gains from present levels. We have therefore revised our forecasts higher.”

“Still, the escalation in virus cases in the state of Victoria, and lurking tension between Australia and China, are risks to the outlook. Our medium-term view is to be buyers of weakness in the AUD, not to chase the market higher from already rich levels.”