AUD/USD narrowly avoided a break of 0.7600 - Westpac

AUD/USD was able to narrowly avoid a break of 0.7600 in the wake of the strong US Q3 GDP data and got a kick along today from upside surprises on Australian export growth and building approvals in Sep, points out Sean Callow, Research Analyst at Westpac.

Key Quotes

“Resilient global risk appetite and glimmers of stability on iron ore prices should also help the Aussie avoid 0.7600 in the week ahead if they persist.”

“But AUD/USD seems likely to struggle beyond say 0.7750 if the US dollar is broadly supported by tax cut hopes. Moreover, Australian Q3 real retail sales could be negative, creating some discussion about a soft Q3 GDP report on 6 Dec.”

“Positioning is another headwind for AUD, though spec AUD longs are now at least less stretched.”