In view of strategists at Westpac, buyers of the Aussie dollar could be clustered around the mid-0.7400s.
Key Quotes
“Commodity prices don’t argue for a sharp AUD reversal, our index of Australia’s key commodities in consolidation mode after a sharp rise from Jan to early Mar”.
“No wonder then the RBA is using only mild language regarding the currency, Gov Stevens last week not sounding as though the RBA is losing much sleep over AUD”.
“A quiet calendar at home and in China (ahead of Friday’s busy slate) shouldn’t encourage aggressive fresh AUD positioning either way”.
“Surely investors who have steadily bought AUD in recent weeks (CFTC data on futures markets positions) won’t have a catalyst to unwind just yet. Look for AUD/USD to find buyers on dips towards 0.7450/70”.
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