AUD/USD could probe 0.7860/80 – Westpac

The improved global risk mood this week has had the usual effect on the Aussie, with its 0.6% gain at time of writing the best in the G10, explains Sean Callow, Research Analyst at Westpac.

Key Quotes

“President Trump floated a trial balloon about the US rejoining the TPP, before popping it himself just days later. But with D-Day on US tariffs some weeks off, wary optimism has returned.”

“This may have also helped key commodities, with iron ore, aluminium, copper and oil prices on a stronger footing.”

“A CPI reading close to our 0.5%qtr forecast should be taken calmly by markets but there will be considerable tension given the shock 2 years ago.”

“If CPI is somewhere around 0.4-0.6% and risk appetite holds up, AUD/USD could probe 0.7860/80. Positioning suggests upside potential.”