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The AUD in May 2023
Following two months of very compressed ranges AUD/USD volatility returned to ‘normal’ in May, insofar as the monthly hi-low range of 3.6 cents was fractionally above the 10-year average of 3.5 cents (Chart 1). The month’s high was 0.6818 on 10 May and the low right on month-end at 0.6458 – the weakest since 10 November 2022. Recall that AUD weakness back in October/November 2022 – when AUD/USD printed a low of 0.6170 – was a period when China was in the midst of its zero covid nationwide lockdowns and market were busily scaling up their expectations for Fed policy tightening following some upside ... (full story)