8 Jul 2014
AUD/USD downside limited? – Westpac
FXStreet (Edinburgh) - According to analysts at Westpac, the downside in AUD/USD would be limited as the greenback remains soft.
Key Quotes
“The break of 0.9450 last week arguably left the market long ahead of significant risk events”.
“Lousy readings on exports and retail sales were followed by RBA Gov Stevens’ pointed warning to AUD bulls. Our preferred trade remains short AUD vs GBP”.
“AUD should be soft on crosses at least until Thu when we expect the Aust jobs data to be above consensus”.
“Pricing for a rate cut by Dec lingers around 40% but we expect no more cuts. AUD/USD could probe 0.93 or just below early in the week but should be boosted by the jobs data”.
“The USD tone is still not strong either (esp. vs Asia), limiting Aussie downside. Multi-day/week range say 0.9250-0.9500”.
Key Quotes
“The break of 0.9450 last week arguably left the market long ahead of significant risk events”.
“Lousy readings on exports and retail sales were followed by RBA Gov Stevens’ pointed warning to AUD bulls. Our preferred trade remains short AUD vs GBP”.
“AUD should be soft on crosses at least until Thu when we expect the Aust jobs data to be above consensus”.
“Pricing for a rate cut by Dec lingers around 40% but we expect no more cuts. AUD/USD could probe 0.93 or just below early in the week but should be boosted by the jobs data”.
“The USD tone is still not strong either (esp. vs Asia), limiting Aussie downside. Multi-day/week range say 0.9250-0.9500”.