AUD at risk of another slide towards mid-range in the 0.72050 area - Westpac

Research Team at Westpac, suggests that the AUD should continue to enjoy support near term from Australia’s solid domestic story which is helping keep RBA easing talk on the backburner and broadly resilient commodity prices.

Key Quotes

“Our Fed view should chip away at USD so the 0.7450 area should continue to hold. But long AUD spec positions and global bond jitters - especially ahead of the 21 Sep BoJ decision - should cap rallies to the low 0.77s.

Technical: Momentum is now neutral across timeframes after the fall below 0.7650. Short term rebounds are likely to be corrective, leaving AUD at risk of another slide towards mid-range in the 0.72050 area.”