AUD/USD is well-supported on dips to the 0.65 zone but gains remain blocked above 0.68 – Scotiabank
|The AUD has gained a little ground on the weaker USD through mid-year but it remains something of a laggard among the G10 currencies. Economists at Scotiabank analyze AUD/USD outlook.
AUD faces headwinds
Weak regional growth trends, amid slower-than-expected Chinese GDP, plus still-soft terms of trade represent headwinds for the AUD.
Sentiment and positioning remain negative amongst speculative and real money investors.
The RBA may have a little more tightening to do but the policy cycle looks nearly complete, with inflation showing signs of peaking.
Technical trends suggest AUD/USD is well-supported on dips to the 0.65 zone but gains remain blocked above 0.68.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.