USD pullback has helped the aussie to probe 0.71. However, fragile equities and China worries argue for rallies to struggle around 0.7135 resistance, analysts at Westpac report.

AUD/USD to spend considerable time in the high 60s heading into the FOMC’s June meeting

“China’s Covid battle remains a headwind, despite Shanghai announcing wary loosening of restrictions. Fragile equities also argue for AUD/USD rallies to struggle around 0.7135 resistance.” 

“We switch from down to neutral on the week but expect the aussie to spend considerable time in the high 60s heading into the FOMC’s June meeting.”