FXStreet reports that economists at Westpac believe AUD/USD correction to below 0.70 seems plausible given news coming from China.

“Despite the positive risk sentiment, the A$ appears to have been well contained by further indications that Chinese imports of met and thermal coal have been banned (joining wheat, beef and wine to varying degrees). This is important given that 22% of Australian thermal coal exports went to China in the last year and 28% of met coal.” 

“We stick to the view that the near-term risks for the A$ are lower and a dip below 0.70 through end October/early November is still possible. However, near-term, the A$ looks well contained by 0.7260 on the topside and 0.7124 on the downside.”