The Australian Dollar has posted its strongest year-to-date performance in fifteen years, but TD Securities analysts Prashant Newnaha and Howard Du are now calling for limited further gains ahead. The currency pair faces technical resistance and deteriorating momentum despite the impressive run through early 2025.
TD Securities identifies bearish opportunities in AUD crosses, suggesting traders should look to fade strength rather than chase the rally higher. The call comes as the Australian Dollar approaches key technical levels that historically have capped advances. Market participants are being warned that the conditions supporting the AUD’s exceptional start to the year may be exhausting.
The analysis impacts forex traders holding long AUD positions, particularly against major crosses, as well as commodity-linked currency strategies given Australia’s export profile. Brokers should prepare for potential reversal patterns as client positioning may need adjustment.
FXnCO Insight
Consider taking profits on long AUD positions and exploring selective bearish AUD cross trades as TD Securities flags exhaustion in this year’s strongest-performing major currency.
Source: FXStreet