AUDUSD: Global picture and powerful greenback suggest risks still to 0.6670 – Westpac

The aussie printed fresh lows against the USD since June 2020 during the week but has performed well on most crosses. Booming jobs data fuels debate over the RBA hiking 75 bps in August, so outperformance on crosses can continue. However, global picture and mighty USD suggest risks still to 0.6670, according to economists at Westpac.

Australia’s domestic economy continues to provide support

“Business and consumer sentiment are down but hard data on retail spending and employment remain consistent with a strong rebound from covid lockdowns.”

“The unemployment rate is down to just 3.5%, fuelling debate over the Reserve Bank of Australia hiking 75 bps in August. So outperformance on crosses should continue, but the global picture and powerful USD suggest risks still to 0.6670.”