The outlook on the Aussie dollar in the near term remains tilted to the neutral
side, according to Strategist Sean Callow at Westpac.
Key
Quotes
“The RBA’s steady hand and optimism on
growth should support AUD on crosses for some time, even if low inflation leaves
the rate cut option on the table”.
“Our preferred plays are AUD/EUR and
AUD/NZD given the ECB’s dovish tone into the Dec meeting and an RBNZ cut next
month only 50% priced”.
“Upside on all AUD pairs will be
constrained by China’s sluggish data momentum and iron ore prices below
$50/tonne”.
“AUD/USD
should trade mostly 0.7050 - 0.7290/0.7300, with a fi rm US dollar keeping a lid
on the Aussie, for a neutral weekly bias”.
