AUD/USD: driving force behind leg lower has been further US dollar strength- Westpac

Analysts at Westpac explained that after “a decisive shift down from USD0.78, during April-May, the Australian dollar has flirted with the USD0.75 figure on a number of occasions” but had been unable to sustain a break below. 

Key Quotes:

"Stepping forward a month, the USD0.75 level has now well and truly given way. Indeed, in the past fortnight, the Australian dollar has spent seven of ten trading days below USD0.74."

"The driving force behind this leg lower for our currency has been further US dollar strength. From 93.5 as we went to press in June, the US dollar DXY index rose to a high of 95.3 late in the month before partly retracing to 94.6 currently.

Behind this market move are two key narratives: US economic strength; and lingering uncertainty over global trade."