AUD/USD: Sino-American tit-for-tat to hurt the Aussie – OCBC

The AUD/USD remains supported on the back of resilient risk sentiment. However, its fundamental picture continues to deteriorate on a difficult macro outlook in China and Sino-US tensions, Terence Wu, an FX strategist at OCBC Bank, briefs. 

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Key quotes

“We prefer to stay on the cautious side, expecting the Sino-US tit-for-tat to tilt the equation towards being risk-negative. In this context, we expect to remain in favour of the USD against the antipodeans.”

“We expect the pair to gradually lose its supported posture. Prefer to sell on rallies for now.” 

“Near-term resistance at 0.6600, with a floor at 0.6520.”