AUD/USD to mostly trade with a 0.77 handle – Westpac

Sandeep Kanihama FXStreet Contributor

The soft US dollar tone post-FOMC has provided AUD/USD with a boost it surely needed, according to Sean Callow, Research Analyst at Westpac.

Key Quotes

“Ahead of the Fed headlines, the pair was trading fresh 3 month lows around 0.7675. Australia’s key commodity prices extended their poor run, with our measure of Australia’s commodity basket down 4.3% so far this month, to lows since late November.”

“At that time, AUD/USD was around 0.7625, yet yield differentials have move further against the Aussie, leaving short term fair value below 0.75. US-led trade tensions continue, with the G20 forced to again leave out of its statement its previous commitment against protectionism due to the US stance. And Trump’s anti-China trade steps will extend the battle.”

“On the positive side, Australian job creation keeps barrelling along. And near term, a softer US$ tone is probably enough for AUD/USD to mostly trade with a 0.77 handle.”

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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