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AUD/USD risks dropping below 0.70 – Westpac
FXStreet (Edinburgh) – Strategist at Westpac Robert Rennie hinted at the likeliness that AUD/USD could break below the 0.70 handle in the medium term.
Key Quotes
“Bottom line for me is that we remain comfortable with our long standing call that the AUD would be at 0.72 by year end”.
“However, if commodity prices continue to fall by a further 10%; if the Fed raises rates twice this year; if measures of market risk aversion and volatility rise to levels seen early this year and if speculative shorts in A$ rise sharply, I see rising risks of dips towards 0.70 before year end”.
“However, I still argue there are factors that will make such a move sticky and slow in nature. Thus at least for the moment I would describe the risks of below 0.70 as low, but worth monitoring”.
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AUD/USD risks dropping below 0.70 – Westpac
Source: FXStreet
