Currency strategists at Commonwealth Bank of Australia note that Australian dollar is trading versus its US counterpart range-bound between 0.9810 and 0.9896. The specialists note, however, that by the end of the week the pair AUD/USD may get under pressure.
According to the bank, there aren’t many investors willing to take risk ahead of the 2-day Fed meeting starting Tuesday. The analysts believe that US monetary authorities will try to look more optimistic after the beige book and try to understate weak payrolls number. As a result, American yields may get a little higher and push up USD against all crosses.
Commonwealth expects Aussie to approach 0.9700 by the end of the week.
Chart. H1 AUD/USD