AUD/USD could head towards the mid-0.87s – Westpac

FXStreet (Edinburgh) - Sean Callow, Strategist at Westpac, believes the decline in the pair should start to slow down the pace and could well visit the mid-0.87 area.

Key Quotes

“Having tumbled 6 cents in 20 days, AUD/USD seems due for at least a slower pace of decline”.

“Yet USD sentiment is likely to hold firm in the week ahead, while news flow from China won’t improve in a hurry, leaving commodities struggling”.

“The domestic story is not dire, so we see limits to how much further AUD ‘should’ fall”.

“Chartists’ target of 0.8660 seems a bit far on the fundamental view but it will be the talk of the week ahead”.

“The mid-0.87s seem very likely but on a multi-week basis, we like AUD higher versus e.g. EUR, NZD and (probably) JPY”.