AUD/USD: technicals are suggestive of exhaustion - Scotiabank

Analysts at Scotiabank explained that AUD appears to be struggling around its multi-year highs near 0.80 following an impressive 10% rally from its May low. 

Key Quotes:

"Technicals are suggestive of exhaustion and narrowing spreads are eroding AUD support."

"Bullish AUD CFTC positioning is extended at the upper end of its multi-year range and we highlight the risk of an adjustment."

AUD is trading well above both our Q4 2017 target at 0.75 and our Q4 2018 target at 0.78."