AUD/USD to target a move to 0.80 – Westpac

AUD’s break higher on Friday signals further gains during the week ahead, with the 0.8000 level within reach, according to economists at Westpac.   

Key quotes

“Rising pressure from two factors arguably drove that explosive move higher in the aussie on Friday. Firstly, the melt up in industrial commodities on the back of the near collapse in the electricity grid in Texas that lifted the likes of aluminium 2.23%, nickel 5.8%, copper 7.3%, and tin 10.8% on the week. Secondly, the upside surprises in dividend announcements for Australian mining companies that tend to announce in USD and offer payment in AUD, and the prospect of even larger dividends later in the year. 

“The AUD/USD has now clearly broken out of our expected 0.76 to 0.78 range – even as the USD holds its own ground.” 

“Any dips back to 0.7750/75 should remain very well supported, with a move to 0.80 the near-term target.”