Flash: AUD/USD, modest bounce to 0.9300/50 expected - Westpac

FXstreet.com (Barcelona) - AUD/USD fell off a cliff during Q2 in combination of another RBA rate cut, coupled with softness in key Asian trading partners and a global scramble for USD, notes Sean Callow, FX Strategist at Westpac.

Callow sees the mood towards the AUD/USD not having improved, yet the Strategist highlights that "it is now (finally) close to our estimate of fair value, 0.91-0.92."

Callow adds that "While fresh 34 month lows are quite possible near term, our base case is a period of stabilization and modest gains in AUD/USD, to around 0.9300/50 multi-day/week." Stretched short AUD positioning should help, Callow concluded.