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26 Aug 2014
AUD/USD sell strength in the short-term – Westpac
FXStreet (Edinburgh) - Analysts at Westpac Global Strategy Group recommended selling the pair towards the 0.9330/40 band.
Key Quotes
“With USD printing multi-month highs against many major currencies in recent days, a move reinforced by the Yellen speech, it is fair to ask how much longer AUD can outperform”.
“Five year lows on a basket of Australia’s key commodity prices and softer Chinese growth momentum flag a warning of a downside break”.
“However, the domestic story has not taken the recent hits of e.g. EUR, GBP and NZD, with the RBA still confident growth will pick up in 2015 and this week’s calendar (capex) is unlikely to encourage rate cut pricing, keeping AUD crosses supported”.
“So long as AUD/USD 0.9200 holds we will remain neutral on the week but on a short term basis we lean towards selling any rallies to 0.9330/40 rather than buying dips”.
Key Quotes
“With USD printing multi-month highs against many major currencies in recent days, a move reinforced by the Yellen speech, it is fair to ask how much longer AUD can outperform”.
“Five year lows on a basket of Australia’s key commodity prices and softer Chinese growth momentum flag a warning of a downside break”.
“However, the domestic story has not taken the recent hits of e.g. EUR, GBP and NZD, with the RBA still confident growth will pick up in 2015 and this week’s calendar (capex) is unlikely to encourage rate cut pricing, keeping AUD crosses supported”.
“So long as AUD/USD 0.9200 holds we will remain neutral on the week but on a short term basis we lean towards selling any rallies to 0.9330/40 rather than buying dips”.