The AUD/USD’s orderly decline over the last couple of weeks appears to have hit a pause for now, helped by the failure of the US$ post Friday’s NFP report, according to Robert Rennie, Research Analyst at Westpac.
“It’s worthy of note the 38.2% retracement of this year’s range comes in at 0.7756, pretty close to the lows for the week.”
“While we could see further near term consolidation above that level, we stick with our downward bias over coming weeks given our positive USD outlook and expectations of a weaker domestic jobs picture later this year.”
“China’s return from the week-long holiday saw iron ore drop further and the 62% benchmark has now pretty much retraced the July/ August bounce to fall below $60 on Wednesday.”
“This has helped drive the midpoint of our fair value model back towards 0.76, a level we target by year end.”
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