AUD/USD to extend the rebound towards 0.73 – Westpac
|The AUD/USD pair narrowly avoided a break of 0.7000 and with the US dollar faltering, the aussie should extend its rebound towards 0.7300, according to economists at Westpac.
Key quotes
“AUD/USD is always sensitive to the US dollar mood but the inverse correlation has tightened in recent months. This relationship is unlikely to loosen substantially in Q4. As discussed on p3, our baseline projection remains for US dollar decline into year-end. While there should be turbulence either side of the US election, we expect equities to emerge stronger, supporting AUD/USD en route to 0.75.”
“Shorter-term, we have plenty of domestic news to absorb. The RBA should hold steady but with a dovish statement. Markets will have priced in a budget pitched as growth-supportive, but it surely won’t do the Aussie’s cause any harm.”
“If the US dollar continues to tilt lower, the 100-DMA at 0.7033 should remain well intact, with a bias for a push back to 0.7275/0.7300.”
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.