A snippet from WPAC on the Australian dollar, in brief for the week ahead:
- AUD might find support from a likely very benign US June PCE this week, reinforcing September Fed rate cut pricing, while Biden dropping out of the US presidential race likely stymies the rush to bullish-USD Trump trades for the time being.
- But the coast is not completely clear for AUD either - the tech sector rotation is creating ongoing upheaval, while China's Plenum contained very little for markets beyond fiscal reform and the known ongoing transition to new growth sources. Once again there are no "all-out" stimulus plans.
- look to dips into the 0.6625-35 zone as buying opportunities
