8 Apr 2015
AUD/USD might explore 0.7800 region in the near-term – Westpac
FXStreet (Barcelona) - Sean Callow of Westpac, views that AUD/USD might move higher towards the topside of its multi-week 0.75-0.78 range in the near-term, and might weaken towards 0.73 in Q3.
Key Quotes
“AUD/USD should trade a rough 0.75-0.78 range multi-week, exploring the higher end of the range near term, following the RBA’s surprise steady hand in April.”
“Indications that the Fed will postpone the start of its tightening cycle yet again should add to the support for AUD/USD around 0.75. Signs of increased Japanese demand also argue for support for AUD on dips. Our short term fair value estimate is around 0.7650.”
“However, into Q3, US data should improve, commodity prices should stay heavy and markets are likely to continue to lean towards further RBA easing beyond the cut we expect in May. This should see AUD/USD grind down to the 0.73-0.75 region.”
Key Quotes
“AUD/USD should trade a rough 0.75-0.78 range multi-week, exploring the higher end of the range near term, following the RBA’s surprise steady hand in April.”
“Indications that the Fed will postpone the start of its tightening cycle yet again should add to the support for AUD/USD around 0.75. Signs of increased Japanese demand also argue for support for AUD on dips. Our short term fair value estimate is around 0.7650.”
“However, into Q3, US data should improve, commodity prices should stay heavy and markets are likely to continue to lean towards further RBA easing beyond the cut we expect in May. This should see AUD/USD grind down to the 0.73-0.75 region.”