The AUD/USD pair is consolidating in the high 0.72s but economists at Westpac see the aussie fading at the 0.7350 barrier. On the flip side, dips below 0.72 would be an opportunity to buy.
“The combination of positive vaccine news, record China steel production driving record demand for iron ore and commodities in general, plus Lowe’s comments that ‘negative rates were still extraordinarily unlikely in Australia’ have lifted A$ sentiment in recent sessions.”
“We still see fresh closures/curfews and stay at home orders in the US and Europe as capping 0.7350 for now.”
“Signs that Asian central banks are becoming concerned by recent currency strength also acts as a cap on the A$ too.”
“Weakness to 0.7180/0.7210 is another opportunity to buy though.”