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14 May 2015
AUD/USD downside appears limited – Westpac
FXStreet (Edinburgh) - Strategist Sean Callow at Westpac suggested pullbacks in the pair could be limited in the near term.
Key Quotes
“AUD/USD downside over the week should be limited to perhaps 0.7900/50, with help from the iron ore price bounce, patchy USD sentiment given persistently lukewarm data and only modest pricing for further RBA easing”.
“Given the breadth of USD unwinding, 0.8520 is not an unreasonable target. But we continue to view this rally as being on borrowed time”.
“China’s easing steps are widely seen as too little too late and there is no obvious strength in hard data from key Asian economies”.
“Historically low wages growth gives the RBA plenty of room for another cut later in the year if demand disappoints”.
“The main wave of AUD spec short-covering should also be behind us, with specs more balanced”.
Key Quotes
“AUD/USD downside over the week should be limited to perhaps 0.7900/50, with help from the iron ore price bounce, patchy USD sentiment given persistently lukewarm data and only modest pricing for further RBA easing”.
“Given the breadth of USD unwinding, 0.8520 is not an unreasonable target. But we continue to view this rally as being on borrowed time”.
“China’s easing steps are widely seen as too little too late and there is no obvious strength in hard data from key Asian economies”.
“Historically low wages growth gives the RBA plenty of room for another cut later in the year if demand disappoints”.
“The main wave of AUD spec short-covering should also be behind us, with specs more balanced”.