AUD: Licks its wounds – Westpac

By FXStreet Sean Callow, Research Analyst at Westpac, notes that the AUD/USD tested 0.7300 this week, a full 4 cent loss since the RBA’s rate cut.

Key Quotes

“Periods of USD strength and cooler commodity prices have also played a role. A sharp bounce in Australian consumer sentiment in response to the rate cut was of interest this week but next week is more significant for markets: RBA minutes, Q1 wages and Apr unemployment. A firmer USD should help cap the Aussie in the mid-0.74s but there’s probably enough rate cut risk already in AUD/USD, with the 0.7260/0.7300 area to hold unless there’s a major negative surprise in the data flurry. A June rate cut should remain a (small) minority view.”
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Source:: FX Street