FXStreet reports that economists at Westpac discuss AUD/USD prospects.

“Our underlying bias is for USD depreciation but we should brace for volatility after the FOMC meeting. A$’s commodity price support remains very strong, with spot iron ore back to $212/t, coking coal at highs since Aug 2019 and oil (thus LNG) marching higher, though copper has softened. We suspect AUD/USD sees choppy price action postFOMC but with a fair value 0.84+, are happy to remain long from 0.7680. If Lowe gives clear support to those calling for QE tapering and May jobs rebound, the gap to fair value should shrink.”