Forex Flash: USD a buy on dips; AUD lower - NAB

“With too many potential negatives in other major currencies and no signs of QE-dollars leaking abroad as a result, it is difficult for now to hold anything other than a buy USD on dips view,” strategists at the NAB say, expanding: “We believe the AUD can leak lower again without the need for domestic data to turn for the worse and RBA rate cut hopes to revive, in particular if the USD continues to trade with a steadier/firmer tone.”

“Metals prices are one fundamental driver we believe could be a catalyst for fresh weakness, all
the more so after a set of relatively soft China February data,” they add.