According to Sean Callow, Strategist at Westpac, the upside in the Aussie dollar could be capped around the mid-0.7600s. Key Quotes “The post-FOMC wave of USD selling has faltered, reducing the chances of a final lunge at 0.77-0.78”. “We don’t expect a major USD rally near term however, leaving us leaning back to neutral on the week”. “Commodity prices don’t argue for a sharp AUD reversal, with our daily index (WCFIAECI on Bloomberg) in consolidation mode after a sharp rise from Jan to early Mar”. “No wonder the RBA is using only mild language regarding the currency. A quiet calendar at home and in China shouldn’t encourage aggressive AUD positioning either way; surely specs who have steadily bought AUD in recent weeks (CFTC data) won’t have a catalyst to unwind just yet”. “Look for AUD/USD to fi nd buyers on dips towards the 21dma now at 0.7438 but with rallies capped around 0.7650”. For more information, read our latest forex news.