AUD/USD has the fuel for a rally - Westpac

Sandeep Kanihama FXStreet Contributor

According to Sean Callow, Research Analyst at Westpac, there was cause for optimism over the Australian dollar early this week as China’s return from a week-long holiday meant a resumption of benchmark iron ore prices.

Key Quotes

“Less helpful though for AUD/USD’s attempt to rally from 32 month lows near 0.70 was the poor sentiment in Chinese equities. This was a background concern for AUD but equity weakness was much harder to ignore when US markets posted their largest losses since February.”

“With specs already short, AUD/USD at least has the fuel for a rally if global conditions improve near term. If not however, there is little in the way of the 0.69 handle, especially with AUD potentially still suffering a little from domestic political uncertainty ahead of the 20 October byelection that could produce a minority government.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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