AUD/USD Sell the Rallies to 0.7480 – Westpac
Strategists at Westpac have reiterated the ‘sell-on-rallies’ outlook on the Aussie dollar.
“The RBA’s steady hand this week was no surprise but the lack of an overt easing bias was”.
“Of course the statement does not preclude action as soon as our August base case but for now, optimism prevails, even with a repeat of the caveat about any potential AUD appreciation”.
“AUD/USD was already looking more constructive given improved risk sentiment, a weaker USD in the wake of the May payrolls report which wiped out pricing for a June Fed hike, oil prices approaching $50/bbl and iron ore showing signs of stabilising around $50/tonne”.
“A low key local calendar in coming days should also lend support to AUD/USD, with scope to probe 0.7480 resistance. Multi-month bias still to sell rallies however”.