Search ForexCrunch

Sean Callow, Research Analyst at Westpac, suggests that holiday-thinned northern hemisphere markets don’t suggest that a range break is imminent for AUD/USD pair as it has traded a mere 1 ¾ cent range since mid-June, unable to break either 0.7300 or 0.7500.  

Key Quotes

“Both leveraged funds and asset managers are already net short AUD, though leveraged positions are modest by historical standards.”

“These positions could be extended if there is yet more bad news on US-China trade. With some justification, US equities have been resilient to the deepening trade tensions but Asia is not so sanguine.”

“Industrial commodities are also feeling the weight of trade tensions. If this remains the case then AUD/USD should explore the weak side of the range, in the low-mid-0.73s.”