Outlook for AUD/USD - Westpac

Analysts at Westpac offered a market outlook for AUD/USD.

Key Quotes:

AUD/USD 1 day: The Aussie faces plenty of congestion just above 0.7500, including the 100 and 200 day moving averages. But overall it looks resilient, with initial scope for 0.7530/40. The US holiday should tighten ranges to start the week but our overall bias is moderately bullish.

AUD/USD 1-3 month: Below 0.7200. The US dollar has had an impressive rise since the US election and has potential to rise further during the months ahead. The Fed’s assertive tightening projections plus US fiscal expansion should maintain upside pressure on US interest rates and the US dollar. Against that coal and iron ore are likely to sustain a good portion of their dramatic rises, and economic data should improve in Q4 and Q1, but these forces are subservient to the US dollar’s trend. There’s also the issue of Australia’s AAA rating, seen at risk. (23 Dec).