AUD should find support near term - Westpac

Sean Callow, Research Analyst at Westpac, suggests that the AUD should find support from a number of sources near term as the Australia’s key commodity prices continue to enjoy their unexpectedly protracted rally.

Key Quotes

“Coking coal (12% of total exports) is most eye-catching, up 70% so far in Q3 alone.

Q2 GDP was mixed but strong enough to keep the RBA looking at inflation, not growth. This will leave pricing for a cut before Nov very low, supporting AUD’s yield appeal. The uncertainty over the Fed/BoJ double on 21 Sep should mean AUD/USD finds 0.7750/60 decent resistance, but dips to 0.7550 should find strong demand.”