Westpac: why it’s time to buy AUD/USD?
Analysts at Westpac recommend buying AUD/USD at 0.7585 with Stop Loss at 0.7495 as they expect in to make another bullish attempt to overcome 0.7800 next week and rise above 0.8000 next month.
Australian dollar fell on Monday on the lower than expected inflation data from Australia. CPI came at -0.2% vs. +0.3% expected. Trimmed mean CPI. Which excludes most volatile items, was just +0.2% vs. the forecast of +0.5%.
However, Westpac points out that iron ore prices are still high that is a very positive factor for Aussie. The specialists don’t think that the Reserve Bank of Australia will cut interest rate next week. On the other hand, they believe that the US dollar will decline after the Federal Reserve’s meeting, and the market’s risk sentiment will improve after the Bank of Japan’s meeting on Thursday – all of this is good for AUD/USD.