While we’ve held a neutral target in Q2 on AUD, our strategic preference has been to fade rallies rather than to buy dips: the potential we see for AUD to lose some of the RBA policy support it enjoyed in May keeps this bias intact.

As such, while our 0.6600 neutral target has served us well so far in Q2, we are now inclined to view it as a level where we would look to fade AUD/USD strength into quarter-end, targeting 0.6385 and allowing us to set the appropriate risk-reward with a stop loss at the 200-DMA, around 0.6700.