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18 Sep 2013
Flash: AUD/USD still a sell at 0.95? - Westpac
FXstreet.com (Barcelona) - On the near term, the AUD/USD is expected to trade higher, possibly targeting a test of 0.95, according to Rob Rennie, FX Strategist at Westpac.
Key Quotes
"We have maintained a more up-beat outlook for the AUD in part driven by our economists forecast that FOMC tapering will be a timid affair. In part, this was driven by the fact that markets simply got too negative about the outlook for China and commodity markets in general. In part, this was driven by the fact that the speed of the fall had become excessive."
"Depending on the FOMC taper outcome, depending on the outcome of this weekend's German election, depending on upcoming Chinese data and depending on how rates markets develop pricing for the RBA, this move has potential to go further."
"If we refer to our technical analyst David Coloretti, he notes the 38.2% retracement of the 1.0585 high on 11th April to the low on August 5 at 0.8848 comes in at 0.9515. This suggests a retracement to that level seems 'normal'."
Key Quotes
"We have maintained a more up-beat outlook for the AUD in part driven by our economists forecast that FOMC tapering will be a timid affair. In part, this was driven by the fact that markets simply got too negative about the outlook for China and commodity markets in general. In part, this was driven by the fact that the speed of the fall had become excessive."
"Depending on the FOMC taper outcome, depending on the outcome of this weekend's German election, depending on upcoming Chinese data and depending on how rates markets develop pricing for the RBA, this move has potential to go further."
"If we refer to our technical analyst David Coloretti, he notes the 38.2% retracement of the 1.0585 high on 11th April to the low on August 5 at 0.8848 comes in at 0.9515. This suggests a retracement to that level seems 'normal'."