AUD/USD could test 0.7250 – Westpac

By FXStreet According to analysts from Westpac, AUD/USD could rise to test 0.7250 but their remain skeptical about strength above that area.

Key Quotes:

“A modestly stronger US$ has had a limited impact on the A$ to date, with stronger crude/ iron ore and improved risk sentiment lifting the A$ on a variety of axes.”

“The rebound post today’s softer employment data adds to the sense of demand on dips. This is a story that may boost the A$ yet further and a test towards 0.7250 may be seen in coming days. However, we remain skeptical of strength beyond that area.”

“Iron ore should be capped by the prospect of fresh supply with Roy Hill moving forward, Vale confi rming testing of S11D and signs we are approaching agreement on Samarco. We also question whether WTI can push much above $32/34. We thus hold a neutral bias at current levels, but will shift to a sell in the 0.7200/ 0.7250 region.”
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Source:: FX Street