Societe Generale analysts highlight AUD/USD approaching 0.69 and the March-April trough near 0.6833 despite tighter spreads.
The Australian dollar remains under pressure, with AUD/USD converging toward the 0.69 level and the March-April low near 0.6833. Analysts note the currency’s vulnerability despite a sharp tightening in the 2-year spread to the USD.
Earlier this year, AUD/USD traded as low as 0.6833 in March and April before recovering modestly. The current move suggests a retest of those levels, with limited support seen below 0.69.
Downside risks persist amid broader USD strength and shifting yield differentials, though no immediate market reaction was specified.