AUD/USD should push higher - Westpac

Sean Callow, Research Analyst at Westpac, explains that the AUD/USD has traded a 1 cent range in this week and suggests that the commodities are supportive of further A$ recovery but there could be some caution ahead of the 20 October by-election.

Key Quotes

“There was cause for optimism over the Australian dollar early this week.”

“Less helpful though for the Aussie’s attempt to rally from 32 month lows near 0.7000 was the poor sentiment in Chinese equities. This was initially only a background concern for AUD but equity weakness was much harder to ignore on Wednesday when US markets posted their largest losses since February.”

“Commodity prices suggest AUD/USD should push higher and there are calls in Chinese media for fiscal stimulus to support growth as Chinese exporters struggle with US tariffs. But it may be hard for the Aussie to recover above 0.72 if equity markets remain jittery and with Australian political uncertainty elevated ahead of the 20 October by-election.”

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.