AUD: Flirting around its best level in three months - BBH

The Australian dollar culminated its recent rally by poking through $0.7700 briefly before the weekend as it reached its best level in three months, points out the research team at BBH.

Key Quotes

“The Reserve Bank of Australia meets in early July, and although it is unlikely to change rates, it is likely to dampen lingering ideas that a rate cut may still be delivered.  The central bank may not like the currency appreciation, but on a trade-weighted basis, it is several percentage points lower than it was the last time it was around $0.7700.    Also with iron ore prices rallying 20% over the past couple of weeks, the terms of trade have improved.  Initial support is seen in the $0.7620-$0.7640 area.”