AUD/USD to suffer further setbacks as far as 0.72 – Westpac

Australia’s data in the week ahead should be dire. The US dollar is also back on a decent footing. Therefore, the AUD/USD pair is likely prone to further setbacks, potentially as far as 0.7200, economists at Westpac report.

Vaccine hesitancy is waning

“One likely source of support is the conversion of historically immense mining dividends, AUD18 B or more. This is obviously only temporary support but will linger for a while.” 

“There is also optimism that in Q4, Australia’s catch-up on vaccination should be starting to result in eased restrictions and thus scope for the economy to rebound.”

“Still, Australia’s data in the week ahead should be dire, including our forecast -175k for Aug jobs. The US dollar is also back on a decent footing. A$ is likely to be prone to further setbacks, potentially as far as 0.7200.”