AUD/USD: will benefit on Fed pricing reductions – Westpac

By FXStreet FXStreet (Guatemala) – Analysts at Westpac offered an insight into AUD/USD and levels.

Key Quotes:

“Look to buy dips in AUD to 0.7150 with a stop at 0.7070.”

“AUD is among the currencies likely to benefit from any further reduction in pricing for Fed tightening, and with an RBA rate cut still 56% by December and key commodity prices holding towards the top of the ranges of recent weeks, its hard to see what might hit AUD lower here.”

“However, AUD should struggle on a range of crosses so long as China’s economy continues to produce lacklustre data. Attention is now on the Oct 26-29 Communist Party plenum where there will be market unease over a potential lowering of the 5 year GDP target from 7% to 6.5%.”

“So AUD looks to be stuck in a range here with 0.7380/0.7400 capping on the topside, but AUD well supported on dips to 0.7150/0.7160. We are neutral at these levels.”
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Source:: FX Street