AUD/USD: Near-term trade below 0.70 is plausible – Westpac

AUD’s near-term outlook remains bearish. However, economists at Westpac expect the AUD/USD pair to recoup its losses and rise above the 0.74 level.

0.7030 vulnerable

“With global growth weakening, stagflation risks rising and Chinese lockdowns extending, the AUD/USD should remain on the back foot in coming weeks, with near-term risks to support at 0.7030, then 0.6985.”

“The aussie is somewhat fragile against a US dollar bolstered by the Fed’s accelerated tightening cycle. Turbulent equity markets are also keeping a lid on AUD, so near-term trade below 0.70 is plausible.” 

“Multi-week/month, a recovery to 0.74 and then higher remains likely.”