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20 May 2014
AUD/USD: Break under 0.93 should be short-lived - Westpac
FXStreet (Bali) - According to Westpac FX Team, any fall below 0.9300 in AUD/USD near term should be short-lived.
Key Quotes
"Sliding yields globally seem to be providing a gentle bid tone to AUD/USD, with foreign demand for a wide range of AU debt instruments. Low G10 FX volatility seems to be working to AUD’s advantage, making a 2013-style quick slide in AUD look less likely as the weeks roll by. So any trade under 0.9300 near term should be short-lived."
"But China still seems to be decelerating (eye on flash PMI Thu), spot iron ore is threatening to slide under $100 and pricing for the RBA cash rate has now flattened to near 0 by Feb 2015. Local data should also help cap AUD/USD in the mid-0.94s, with Q1 WCI to show slow wages growth and a likely tumble in consumer sentiment (Wed) in response to the budget."
Key Quotes
"Sliding yields globally seem to be providing a gentle bid tone to AUD/USD, with foreign demand for a wide range of AU debt instruments. Low G10 FX volatility seems to be working to AUD’s advantage, making a 2013-style quick slide in AUD look less likely as the weeks roll by. So any trade under 0.9300 near term should be short-lived."
"But China still seems to be decelerating (eye on flash PMI Thu), spot iron ore is threatening to slide under $100 and pricing for the RBA cash rate has now flattened to near 0 by Feb 2015. Local data should also help cap AUD/USD in the mid-0.94s, with Q1 WCI to show slow wages growth and a likely tumble in consumer sentiment (Wed) in response to the budget."