FXStreet (Edinburgh) - Strategist at Westpac Sean Callow has suggested fading the strength in the pair. Key Quotes “Australia’s key commodity prices have rallied sharply since late Jan, with the Westpac Australian Export Commodity Index up about 5%”. “China’s priority on CNY stability and a less volatile stock market have also helped discourage AUD bears”. “But the biggest surge in AUD/USD lately has simply been due to USD weakness”. “Friday’s US jobs report and next week’s lunar new year holidays aren’t likely to encourage yet more pricing out of Fed tightening risks, suggesting AUD/USD could lack fuel to break through 0.7250 to reach the early Jan 0.73 region”. “Our expectation that the RBA will not resume cutting the cash rate should help limit the downside for AUD/ USD multi-day/week to say 0.6900”. “But our overall bias is to sell rallies, with no tangible sign of the improved growth pulse that would allow commodity prices to steady and thus fade from the front pages”. For more information, read our latest forex news.