AUD/USD: S/T Model Points To 0.78 But AU Jobs Report To Prevent It From Clicking 0.77
Despite a firmer USD, AUD/USD sits above the level prevailing prior to last week’s various RBA narratives and which combined with iron ore prices achieving fresh post-September 2014 highs, adequately accounts for its outperformance. Our short term fair value model is now nudging 0.78 cents.
While broader USD volatility will obviously remain very important – and for now means we are not revising our AUD/USD forecasts.
This week’s key domestic events (of which the January labour market data is the highlight) will likely need to be weak indeed to prevent AUD/USD clicking onto a 0.77 handle.