23 Aug 2013
Flash: AUD/USD at risk of 0.8850 near term - Westpac
FXstreet.com (Barcelona) - Positioning for Fed taper in September coupled with the turmoil in Asian currencies are two key factors limiting upside on AUD/USD, notes Sean Callow, FX Strategist at Westpac.
Key Quotes
"Given the USD and Asian mood, AUD/USD seems at risk of probing towards the early Aug 0.8850 lows near term. But there are still reasons to be optimistic on AUD multi-week."
"Iron ore prices are holding up well and pricing for further RBA easing is a modest -17bp by end-2013. The sharp rise in the ‘flash’ Aug China PMI adds to the positives for AUD."
"Even if AUD/USD struggles near term, AUD should be able to grind higher versus the likes of NZD, CAD and JPY."
Key Quotes
"Given the USD and Asian mood, AUD/USD seems at risk of probing towards the early Aug 0.8850 lows near term. But there are still reasons to be optimistic on AUD multi-week."
"Iron ore prices are holding up well and pricing for further RBA easing is a modest -17bp by end-2013. The sharp rise in the ‘flash’ Aug China PMI adds to the positives for AUD."
"Even if AUD/USD struggles near term, AUD should be able to grind higher versus the likes of NZD, CAD and JPY."