AUD/USD could struggle in the low-0.73s – Westpac
|Sean Callow, Strategist at Westpac, sees occasional upticks in the Aussie dollar to face strong resistance in the 0.7300 area.
Key Quotes
“Some tried to spin RBA governor Stevens’ appearance this week as dovish but a mere -2bp is priced for June which is plenty”.
“So long as GDP prints somewhere near our 2.7% y/y forecast, the RBA outlook should not produce any renewed weight on AUD”.
“Our expectation of a pause in the USD rebound in the week ahead suggests AUD/USD finds buyers on dips ahead of 0.7110/20”.
“But the commodity angle is mixed at best. The oil price rebound promises higher
LNG revenues in coming months but the reversal in iron ore prices may continue near term”.
“Rallies to be capped in the low 0.73s”.
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