Westpac remain “biased towards buying AUD/NZD on dips.”
They’d look to enter longs around 1.0860, targeting 1.1050, with a trailing stop at 1.0810.
Westpac note that “Australian Q2 CPI was softer than expected, locking in an RBA rate cut for 12 August. Further afield, developments in China have been encouraging. Iron ore has risen 10% during the past month, amid infrastructure announcements such the large hydro dam in Tibet. And the Shanghai Composite is up 9%. Regarding U.S.-China negotiations for an extended tariff truce, the mood is reportedly constructive, awaiting President Trump’s decision”.