AUD to continue to push modestly higher - Westpac

Research Team at Westpac, suggests that with the Brexit vote almost upon us, now is not the time to make a strong argument about the near term direction for the AUD.

Key Quotes

“However, assuming that ‘Remain’ wins the day (this remains our base case) then we expect AUD to continue to push modestly higher. Hard commodity markets are stable; Brent crude is back above $50; pricing for the Fed remains on the back-foot and without a clear bias from the RBA, it’s hard to see why the A$ will capped at 0.75. We maintain a neutral bias at current levels, though would expect to see AUD higher into next week, assuming remain wins the day.

Technical: 0.7500/50 to cap on the topside while the lower end of the current range is 0.7250, and 0.7150 below that. 

AUD benefitting from a firming growth signal amid firmer business surveys and stronger jobs data and a firmer total yield signal as RBA easing expectations moderate amid various signs that RBA enthusiasm for a follow up rate cut is very low.”