AUD should remain weighed by the strong USD - Westpac
|AUD/USD was brutally rejected on its probe of the 200dma (0.7817 vs high of 0.7813), but the key driver is of course the US dollar revival, according to Sean Callow, Research Analyst at Westpac.
Key Quotes
“The breadth of the dollar’s gains, backing from higher yields and squeeze on positions suggests it continues at least in the week ahead and probably over the next month or so.”
“Domestically, the Q1 CPI didn’t really move the dial, headline inflation a touch softer than expected but core CPI edging up to 2.0%yr. The RBA will surely be firmly on hold on Tue, with most attention on whether Lowe will confirm a lower 2018 GDP forecast to be revealed in the SoMP (3.25% down to 3.0%).”
“With commodities not giving a clear lead, AUD/USD should remain weighed by the strong US$, probing and perhaps breaking Dec’s lows around 0.7500, before becoming a little more two-way as positioning adjusts (latest data indicates flat AUD).”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.