AUD/USD has the fuel for a rally

Research Analyst at Westpac, there was cause for optimism over the Australian dollar early this week as  China’s return from a week-long holiday meant a resumption of benchmark iron ore prices.

“Less helpful though for AUD/USD’s attempt to rally from 32 month lows near 0.70 was the poor sentiment in Chinese equities. This was a background concern for AUD but equity weakness was much harder to ignore when US markets posted their largest losses since February.”

“With specs already short, AUD/USD at least has the fuel for a rally if global conditions improve near term. If not however, there is little in the way of the 0.69 handle, especially with AUD potentially still suffering a little from domestic political uncertainty ahead of the 20 October byelection that could produce a minority government.”/

Stay updated with INFOEUROPEFX to find out the latest news about forex.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.