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

Sandeep Kanihama FXStreet Contributor

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.”

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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