29 Aug 2013
Flash: AUD/USD can sustain drop without opening up staunch losses – Westpac
FXstreet.com (New York) - The busy local data calendar seems likely to produce a mixed picture of growth which leaves open the door for further monetary easing but most likely not until November, impacting the AUD/USD, notes Sean Callow, a Global FX Strategist at Westpac.
Key quotes
“Along with rebounding commodity prices, this should provide background support for AUD/USD. However it may well emerge multi-week rather than in the next few sessions, with plenty of potential for global nerves upsetting risk assets including AUD.”
“Any squeezes should run out of steam ahead of the 55 day moving average at 0.9149, with the main bias modestly to the downside on the week, testing the early Aug low of 0.8848. Breaking this level need not necessarily herald a fresh down leg.”
Key quotes
“Along with rebounding commodity prices, this should provide background support for AUD/USD. However it may well emerge multi-week rather than in the next few sessions, with plenty of potential for global nerves upsetting risk assets including AUD.”
“Any squeezes should run out of steam ahead of the 55 day moving average at 0.9149, with the main bias modestly to the downside on the week, testing the early Aug low of 0.8848. Breaking this level need not necessarily herald a fresh down leg.”