AUD/USD faces upside pressure near-term – Westpac

By FXStreet Strategist at Westpac Sean Callow believes the pair could attempt a run towards 0.77 or even 0.78 in the near term.

Key Quotes

“After the iron ore rally hit a wall, AUD/USD has received a second wind from the Fed”.

“Their cautious outlook has damaged USD’s yield appeal and also bolstered global risk appetite and commodity prices (at least in USD terms)”.

“In itself, this could be enough fuel for a run at 0.77 or even 0.78 into April. But the faster the move, the more chatter we will hear about the RBA cutting the cash rate (already >100% priced by year-end)”.

“Stevens’ speech will be very closely watched. We stick with an upward bias on AUD/USD for the week but are mindful of reversal risks, keeping a downside bias on a 1 month view”.
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Source:: FX Street