On Tuesday BofAML suggested that "it is......>

AUSSIE: On Tuesday BofAML suggested that "it is time to turn positive on AUD,"

initiating a bullish AUD conviction via the crosses.

- The analysts noted that "negative external factors are priced in and positive

domestic factors aren't yet. Indeed the AUD no longer has the burden of being

overvalued. Moreover, it is no longer a carry trade, while the China risks are

factored in. That would allow the more positive domestics to matter. On the

domestic side, Australia's export sector set to become more diversified. Its

domestic infrastructure pipeline continues to build, its household income is

rising as firms are reporting skills shortages."

- BofAML went on to state that as result "AUD TWI now appears undervalued,"

while "AUD positioning is the shortest since 2015 when arguably external

backdrop was far more negative and AUD was still overvalued."