The aussie is emerging largely unscathed from a week that has included a US Federal Reserve meeting that disappointed dovish expectations, RBA minutes that revealed a subtle shift in the Bank’s thinking on the Australian dollar and continued jittery price action in global equities. Economists at Westpac still expect the AUD/USD pair to test 0.74 in the coming months. Key quotes “RBA commentary on the A$ in recent months has merely noted its gains and that they have been broadly in line with fundamentals, citing increased commodity prices. This week’s RBA minutes repeated that assertion, but added the caveat that, ‘a lower exchange rate would provide more assistance to the Australian economy in its recovery’. But we should not get carried away. The RBA’s A$ comments are at best lukewarm and not a precursor to an imminent shift to lower the AUD. If anything markets were braced for an even stronger signal that the RBA could deliver more easing in the near-term. That did not materialise and the A$ firmed after the RBA’s minutes, despite their slight shift in A$ messaging.” “USD gains are likely to prove short-lived. The bigger long-term takeaway is that the Fed has fleshed out an incredibly high bar for removing accommodation. The Fed’s updated forward guidance notes that policy will remain accommodative until three conditions are met; maximum employment, inflation at 2% and inflation on track to moderately exceed 2% for some time.” “Local and regional economic trends underscore a continuing bullish A$ story. August employment grew 111K, well ahead of expectations for a 35K decline. There are always grounds for caution over the quality of the jobs being reported and unemployment will rise as JobKeeper is reduced in Q4, but the RBA’s 10% end-2020 forecast will need to be revised.” “We continue to look for AUD/USD to make another test of 0.74 over the next month.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next GBP/USD: Rebound to falter at the 1.3101 20-DMA, targets 1.2250 – Commerzbank FX Street 2 years The aussie is emerging largely unscathed from a week that has included a US Federal Reserve meeting that disappointed dovish expectations, RBA minutes that revealed a subtle shift in the Bank’s thinking on the Australian dollar and continued jittery price action in global equities. Economists at Westpac still expect the AUD/USD pair to test 0.74 in the coming months. Key quotes “RBA commentary on the A$ in recent months has merely noted its gains and that they have been broadly in line with fundamentals, citing increased commodity prices. This week’s RBA minutes repeated that assertion, but added the caveat that,… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.