AUD/USD is only testing the lower end of fair value range - Westpac

Sean Callow, Research Analyst at Westpac, suggests that the industrial commodity prices have lost some altitude in recent days but AUD/USD is only testing the lower end of Westpac’s fair value range.

Key Quotes

“Australia’s export performance should remain a key positive for AUD, even though we have to wait until 4 April for the next official data.”

“A lack of domestic data near term leaves the Aussie firmly focused offshore. If the US healthcare bill fails to pass, there will be concern over how distant corporate tax cuts could be, let alone infrastructure spending.”

“The question though is how deep is such concern? Enough for sustained risk aversion? We suspect not, given the resilience of US equities since November and the likelihood that the Trump administration will move quite swiftly to re-work the legislation.”

“AUD/USD should continue to find 0.7750 strong resistance but find buyers into 0.7620.”