In view of Robert Rennie, Strategist at Westpac, further upside in the Aussie dollar could be capped by the 0.7500 handle.

Key Quotes

“Ahead of the Brexit vote, I argued strength up to 0.76 was a sell”.

“While Brexit will likely delay a Fed hike into next year, we face a Federal Election this weekend with polls too close to call, a potential shift to an easing bias at the

RBA and a possible negative outlook from S&P later this month depending on how the House and Senate land”.

“Weaker UK growth, a summer of European discontent and lots more political risk to come all suggest the A$ should now be capped closer to 0.7500”.