AUD / USD is consolidating in the 0.72 high, but Westpac economists see the Aussie disappear at the 0.7350 barrier. On the other hand, dips below 0.72 would be a buying opportunity.
“The combination of positive vaccine news, record steel production in China, which is generating record demand for iron ore and raw materials in general, as well as Lowe’s comments that ‘negative rates were still extraordinarily unlikely in Australia ‘have raised A $ sentiment in recent sessions.
“We are still seeing new closures / curfews and home orders in the US and Europe are currently peaking at 0.7350.
“Signs that Asian central banks are increasingly concerned about the currency’s recent strength are also acting as a cap on the A $.”
“The weakness at 0.7180 / 0.7210 is another buying opportunity.”