AUD/USD: 3 reasons to sell the pair according to the Deutsche Bank

Deutsche Bank provides three reasons to sell the AUD against the US dollar:

"We are selling all currencies against the dollar but we believe that the currency with the biggest bearish potential is the AUD. For 3 reasons.

First, the rise in the US rates will continue to weigh on commodity currencies but the AUD is expected to suffer more from rate developments.

Second, from the point of view of trade, commodities may rise in line with the dollar. This poses a risk for commodity exporters in Australia.

Third, the AUD has long benefited from a bullish bias in terms of the G10 forex pairs. The reversal of positioning should exacerbates the decline of the AUD." declares the Deutsche Bank.