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4 Jul 2013
Flash: AUD/USD to stabilize at 0.9100 over the month – Westpac
FXstreet.com (New York) - According to Sean Callow, a Global FX Strategist at Westpac, “We have been looking for AUD/USD to stabilize given historically stretched spec shorts, a recovery in iron ore prices, fading fears over China’s money markets and domestic data mixed rather than weak.”
However, AUD price action has been very poor, selling off on both the RBA statement and Stevens’ apparently misunderstood comments. It seems specs are in no hurry to take profits and USD bulls are likely to remain confident ahead of the 18 Jul Bernanke semiannual.
“We are still disinclined to enter fresh shorts here, seeing AUD/USD roughly stable over the next month (0.91). However, in coming sessions, fresh post-2010 lows seem likely, say 0.8950/00. AUD/NZD seems likely to stay heavy, AUD/EUR probably range-bound given the euro’s renewed sovereign concerns.” Callow adds.
However, AUD price action has been very poor, selling off on both the RBA statement and Stevens’ apparently misunderstood comments. It seems specs are in no hurry to take profits and USD bulls are likely to remain confident ahead of the 18 Jul Bernanke semiannual.
“We are still disinclined to enter fresh shorts here, seeing AUD/USD roughly stable over the next month (0.91). However, in coming sessions, fresh post-2010 lows seem likely, say 0.8950/00. AUD/NZD seems likely to stay heavy, AUD/EUR probably range-bound given the euro’s renewed sovereign concerns.” Callow adds.