FXStreet (Guatemala) – AUD/USD is currently trading at 0.7749 with high of 0.7753 and a low of 0.7695.
AUD/USD has been better bid from the 0.7700 level of yesterday’s business and continues with a bullish bias while capped so far at the aforementioned highs. In the background, Greece continues to grip attentions while not forgetting how ideas of the Fed tightening had tempered the downside in the major commodity currency on the cross over of 2014/15 business.
The Aussie has been a good performer of late on the basis that the Fed has downgraded the pace of which rates are likely to rise in to 2016 while Greece headlines are so frequent that they are making less of a market impact and relieves the Aussie that could be otherwise subject to risk-off outflows.
However, China may play a part on further downside in the currency as well as coal and iron prices and less production hurting the labour market in Australia.
AUD/USD headed towards 0.72?
Jane Foley, Senior Currency Strategist at Rabobank explained that this week’s comments from the RBA’s Edwards made clear that the central bank stand ready to cut rates again if the recovery stalls. “In tune with our concerns about the outlook for growth in China, we see risk that the RBA will cut again in the coming months – though as Edwards made clear, the strength of the Sydney housing market is a thorn in the central bank’s side. Under the weight of additional monetary policy measures, we see risk of AUD/USD pushing towards
0.72 on a 12 mth view.”
(Market News Provided by FXstreet)