AUD/USD should test the 0.7577 - Westpac

AUD/USD should test the 100dma at 0.7577 in the week ahead, aided by a softer USD post-FOMC meeting expects Sean Callow, Research Analyst at Westpac.

Key Quotes

“AUD/USD trading ranges have narrowed of late, consistent with support from key commodity prices (spot iron ore >$80, coking coal $300) but upside is limited by lacklustre domestic data, simmering volatility in Asian capital flows and the US dollar’s underpinnings from the looming Fed rate hike.”

“Q3 was weak across the board but home building and public spending at least should rebound in Q4. Another poor jobs reading would reinforce the gloomy domestic theme. Yet AUD has absorbed bad news recently with insulation from the lack of market desire to price in RBA rate cut risk, given its patience over inflation and the global mood.”