AUD/USD: ING forecasts decline towards .73

Analysis published by efx:

ING FX Strategy Research Although  argues that while AUD has stayed bid as of late, the near-term risks stemming from the external environment could see AUD loses ground.

"Investors are contemplating two Trump worlds: a revival of US reflation hopes or more tough talk on trade policy. Both will be negative for the rate- and risk-sensitive AUD; short AUDUSD may be a good way to hedge for White House policy risks.

Either higher US yields or risks of trade-stifling global protectionist policies will exert bearish pressure on AUD/USD in 3Q17," ING argues.

In line with this view, ING looks for AUD downside risks towards 0.73 in Q3.

AUD/USD is trading circa 0.7577 as of writing.