AUD/USD to struggle at the 0.70 handle – Westpac
|The AUD/USD pair should continue to struggle with 0.70 handle as today is consolidating the renewed upside around 0.6985 zone, up 0.10% on a day, though downside is limited by bounce in iron ore prices, lukewarm US dollar tone and equity resilience, economists at Westpac apprise.
Key quotes
“The domestic outlook surely doesn’t argue for further A$ gains, with Victoria’s Covid-19 resurgence prompting a return to lockdown in Melbourne for 6 weeks. This will damage both Victoria’s economy and other states as interstate tourism falters again and consumer confidence is shaken.”
“Renewed strength in key commodity prices, with iron ore around $106/tonne, and global equities resilient despite the US’s coronavirus surge adds to the case for A$ resilience. But the aussie would still be pricey above 0.70, with risk/reward suggesting selling into the 0.70 handle on a multi-week view.”
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.