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AUD/USD gains appear capped near 0.7650 – Westpac

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 24, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    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”.
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