FXStreet reports that economists at CIBC Capital Markets look for further strength in the AUD/USD.

“From present levels, we target further gains in AUD/USD, to 0.7850 in Q1. A rebound in domestic economic activity, underpinned by accommodative monetary policy, was a strong driver of AUD strength to date. We anticipate that support to continue.”

“On trade, the contribution of iron ore cannot be dismissed, any talk of that market between Australia and China would be concerning. Unless that is the case, we remain bullish and buyers of AUD weakness.”