14 Jul 2015
AUD/USD points to 0.72 by year-end – Westpac
FXStreet (Edinburgh) - According to strategists at Westpac, the Aussie dollar could prolong its descent to the area of 0.72 vs. the greenback by December.
Key Quotes
“We maintain the AUD "ready to descend" theme and forecast a drop to 0.73 by September and 0.72 by December”.
“While Greece may or may not be fixed and Chinese equity may or may not have stabilised, we maintain our expectations for weak commodity prices; weak terms of trade; questions over China growth; reduced foreign demand; and the approach of FOMC lift off”.
“These are all present to varying degrees, though Yellen this week will be key”.
“Diverging weekly Bollinger bands and definitive negative momentum bias across time frames highlight an impulsive downtrend. Target long term trend support at 0.7250/00”.
Key Quotes
“We maintain the AUD "ready to descend" theme and forecast a drop to 0.73 by September and 0.72 by December”.
“While Greece may or may not be fixed and Chinese equity may or may not have stabilised, we maintain our expectations for weak commodity prices; weak terms of trade; questions over China growth; reduced foreign demand; and the approach of FOMC lift off”.
“These are all present to varying degrees, though Yellen this week will be key”.
“Diverging weekly Bollinger bands and definitive negative momentum bias across time frames highlight an impulsive downtrend. Target long term trend support at 0.7250/00”.