AUD/USD: Neutral outlook - Westpac

Sean Callow, Research Analyst at Westpac notes that AUD/USD is dead flat over the past week, consistent with their neutral weekly outlook and they are retaining this view for another week.

Key Quotes

“On the negative side, positioning remains very stretched – see chart, meaning fresh buyers are likely to be hard to find at the top of ranges. A reasonably resilient US dollar – evident on e.g. EUR/USD’s failure above 1.20 – should also help cap the Aussie.”

“But support should come from global risk appetite, commodity prices and the domestic calendar. The RBA should welcome the jump in services investment intentions revealed today, while Q2 GDP is shaping up as a decent rebound from the weather-affected 0.3% in Q1.”

“If GDP prints near our 0.7% estimate and the global mood remains largely optimistic, then AUD/USD support at the 50dma of 0.7833 should hold, while 0.80 remains tough.”