Australian dollar is under pressure - Nomura

Analysts at Nomura noted that AUD/USD is under pressure.

Key Quotes:

• AUD/USD to target 0.7400, crosses offer more downside potential - Nomura
• Sentiment towards AUD is now more negative - Nomura

"AUD sentiment has turned. Patchy Australian data, the announcement of macro prudential policy measures to deal with financial stability risks, and a moderation in the Reserve Bank of Australia’s (RBA) tone on the labour market, coupled with a turn in Australian-centric commodity prices is generating a position unwind."

"We continue to hold a short AUD/CAD position. The asymmetry in risk markets, and scope for a further narrowing in the Australia-Japan real 10-year spread, leads us to think AUD/JPY should remain heavy in the near term."