AUD/USD to move back down towards 0.69 – Westpac
|The aussie has fallen against all but the kiwi in the G10 so far this year. And with March set for lift-off from the Fed, economists expect to see some further weakness versus the USD, driving the AUD/USD towards the 0.69 level.
AUD/USD rallies to stall at 0.72
“US inflation at 7% and unemployment at 4% have markets pricing a risk of a 50bp Fed hike in March. This should underpin the US dollar despite occasional wobbles, helping cap AUD/USD rallies around 0.72.”
“While 10yr AU-US yields spreads are range-bound, the 2yr continues to trend in the US dollar’s favour.”
“A strong US dollar, somewhat dovish RBA and skittish equities suggest multi-week risks for a return to the 0.69 handle or (briefly) lower, but the aussie should be on more solid footing in Q2.”
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.