Forex Flash: AUD/USD strong support 1.0150/1.0200 remains the risk near term - Westpac

With recent Aussie surge to last 1.0334 USD, “despite mixed rather than overly negative news flow,” says Sean Callow, strategist at Westpac, “A test of strong support around 1.0150/1.0200 remains the risk near term,” the analyst adds, “as the extent of further RBA easing is debated and long Japanese and spec positioning weighs.”

“However,” he expands, “such a move should draw bargain hunters eyeing 1.0450 multi-week and possibly as high as 1.06 end-March, as the Fed continues to print USD and resilient Asian growth supports iron ore prices in H1 13,” Sean concludes.