AUD/USD: to consolidate but look for opporuntities in Aussie crosses - Nomura

Analysts at Nomura explained that AUD/USD has fallen repeatedly in May over the past few years. 

Key Quotes:

"Some participants are quick to suggest “seasonality”, but a deeper analysis illustrates there has been a run of macroeconomic developments that have driven the moves."

"This has included a narrowing of the Australia-US two-year swap spread, sharp falls in commodity prices and a stronger USD on either geopolitical or US Fed-related factors. We do not expect this to occur in 2017."

"We look for AUD/USD to consolidate, but for AUD to underperform other key crosses, such as EUR/AUD."