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19 Aug 2013
Flash: AUD/USD poised for squeeze near-term – Westpac
FXstreet.com (New York) - Global FX Strategist Sean Callow at Westpac outlines the short-term outlook of the AUD/USD.
Key quotes
“We stick with our multi-day AUD/USD call for 0.9300/50 on the back of rising commodity prices, a lingering overhang of short AUD positions vulnerable to a further squeeze and receding pricing for RBA easing.”
“The local calendar should be quiet enough to leave RBA pricing little changed. The main wildcard over the month is probably the reaction to looming Fed tapering: if the initial move is modest, USD bulls could be disappointed, boosting AUD further.”
“However, the mid-0.93s will need a major catalyst to give way. Sub-0.90 trade seems unlikely near-term.”
Key quotes
“We stick with our multi-day AUD/USD call for 0.9300/50 on the back of rising commodity prices, a lingering overhang of short AUD positions vulnerable to a further squeeze and receding pricing for RBA easing.”
“The local calendar should be quiet enough to leave RBA pricing little changed. The main wildcard over the month is probably the reaction to looming Fed tapering: if the initial move is modest, USD bulls could be disappointed, boosting AUD further.”
“However, the mid-0.93s will need a major catalyst to give way. Sub-0.90 trade seems unlikely near-term.”