AUD expensive above 0.7550/ 0.76 - Westpac

Research Team at Westpac, suggests that the near term outlook for the A$ will be driven by domestic political developments, the Q2 CPI outcome and the RBA's response in August.

Key Quotes

“We tend to see the A$ as expensive above 0.7550/ 0.76, however with global demand for AAA rated yield super strong at the moment, it's hard to see what will push the A$ sharply lower. Indeed, Monday’s price action post the weekend ‘shock’ hung election suggests there is a strong degree of buy the dip demand out there. Thus, we expect the A$ to spend some time in the current 0.73/0.76 range. A better seller above 0.7550.

Technical: Has been in an uptrend since late May but with little supportive momentum, unlikely to see anything above the June 0.7648 high any time soon.”