AUD/USD to re-test recent highs around 0.6820 – Westpac

Sean Callow, analyst at Westpac, suggests that AUD seems to have quite a few factors in its favour.

Key Quotes

“RBA minutes this week left the door open to lower rates “if the accumulation of additional evidence” supported further easing. This makes a 3 Sep cut even less likely, with pricing down to 10% and a move by Oct (our base case) 60%.”

“Moreover, substantial short A$ spec positioning implies considerable bad news on US-China trade relations is already in the price.”

“Fed chair Powell’s speech at Jackson Hole should set the path for AUD/USD early in the week. The dovish tone that would be consistent with our Fed call (-75bp by end-2019) could help AUD/USD re-test recent highs around 0.6820. But overall the s/t view vs US$ is neutral, while trying longs on crosses e.g. NZD, EUR and GBP.”

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD stays under pressure as traders await Fed rate decision

Despite shooting up on Tuesday, the EUR/USD pair fails to hold on to recovery gains as it trades near 1.1070 ahead of Wednesday’s European session. All eyes on the US Federal Reserve’s monetary policy announcement due at 18:00 GMT.


GBP/USD charts bullish continuation pattern ahead of the Fed

GBP/USD created a bullish outside bar candlestick on Tuesday, signaling a continuation of the recent rally. The outlook would turn bearish if the pair closes below Tuesday's low of 1.2392, in the face of a less dovish Fed outcome.


USD/JPY sticks to tight range on 108.00 ahead of Fed

USD/JPY is steady in Tokyo on Wednesday, having been in a chop overnight in the low 108s before scoring a fresh high in the 108.37 earlier. USD/JPY's resistance up in the 109.30's are in focus, as attention turns towards the key FOMC event. 


Gold seesaws around $1,500 with all eyes on FOMC

With the global traders on a wait and see approach ahead of the key event, Gold offers fewer moves while taking rounds to $1,500 during Wednesday’s Asian session. Also supporting the bulls were positive statistics from the US and the Eurozone.

Gold News

Federal Reserve Preview September 17-18 FOMC: Even Odds

The already complicated economic and bureaucratic circumstances for Wednesday’s Federal Reserve decision were further disturbed when Saudi oil facilities were attacked over the weekend.

Read more