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10 Sep 2013
Flash: AUD/USD poised to extend gains – Westpac
FXstreet.com (Lisbon) - The AUD/USD looks set for further gains near term, with the Fed unlikely to be aggressive in reducing QE, commodity prices resilient as Chinese growth stabilizes and the RBA seemingly not rushing to deliver another rate cut, suggests Sean Callow, a Global FX Strategist at Westpac.
Key quotes
“The AUD/USD now targets 0.9415 multi-day/week. A stretch target of 0.9510 indicated by charts would probably require a notably dovish FOMC.”
“Beyond the 0.94 handle however, the threat of further RBA rate cuts will rise, with our base case a Nov easing, currently only 35% priced in. AUD/USD should be lower over say 3 months.”
Key quotes
“The AUD/USD now targets 0.9415 multi-day/week. A stretch target of 0.9510 indicated by charts would probably require a notably dovish FOMC.”
“Beyond the 0.94 handle however, the threat of further RBA rate cuts will rise, with our base case a Nov easing, currently only 35% priced in. AUD/USD should be lower over say 3 months.”