From David Scutt:
….The chart below, supplied by the NAB, reveals the contributing factors in the recent recovery in the NAB’s Australian dollar fair value model. Based on their assessment, the drop in market volatility has been the major driving force behind the recent rally in the Aussie.
While the NAB, like many others, predicts that the Aussie’s move higher won’t last, forecasting that the AUD/USD will still finish the year buying 67 cents, in the near term it suggests that “it is going to take some sort of shock” for the AUD/USD not to approach or test the .7830/80 level.
Source: NAB: Why the Australian dollar is rallying and could move above 78 cents | Business Insider