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29 Sep 2014
AUD/USD door open to further downside – Westpac
FXStreet (Edinburgh) - Analysts at Westpac Global Strategy Group expects the pair to keep marching south, albeit at a slower pace.
Key Quotes
“Having tumbled 6 cents in three weeks, AUD/USD seems due for at least a slower pace of decline”.
“Yet USD sentiment is likely to hold firm in the week ahead, while news flow from China won’t improve in a hurry, leaving commodities struggling”.
“The domestic story is not dire, with upcoming data likely to be at least mixed and markets not serious about another RBA rate cut”.
“So we see limits to how much further AUD ‘should’ fall. The Jan lows of 0.8660 seem too close not to be tested but on a multi-week basis, we like AUD higher versus e.g. EUR, NZD and (probably) JPY.
Key Quotes
“Having tumbled 6 cents in three weeks, AUD/USD seems due for at least a slower pace of decline”.
“Yet USD sentiment is likely to hold firm in the week ahead, while news flow from China won’t improve in a hurry, leaving commodities struggling”.
“The domestic story is not dire, with upcoming data likely to be at least mixed and markets not serious about another RBA rate cut”.
“So we see limits to how much further AUD ‘should’ fall. The Jan lows of 0.8660 seem too close not to be tested but on a multi-week basis, we like AUD higher versus e.g. EUR, NZD and (probably) JPY.