AUD/USD heading back towards 0.745 – Natixis

Nordine Naam, Research Analyst at Natixis, notes that last week, the Australian dollar proved somewhat resilient in the face of the US dollar’s resurgence as the Australian currency was bolstered by the sharp upturn in iron ore prices back above $79/t, their highest level since October 2014.

Key Quotes

“The latest macroeconomic data has been slightly better than expected, notably as regards investment expenditure. We remain cautious on the Australian dollar, however, in the face of an invigorated US dollar and risks stemming from weaker Chinese growth. Also, the non-manufacturing sector remains fragile. In this respect, a raft of new statistics are due to be published, notably employment figures. We see the AUD/USD going on to test 0.745.”