12 Nov 2013
Flash: AUD/USD bullish for the month, 0.96 achievable - Westpac
FXstreet.com (Barcelona) - While AUD/USD may show further weakness towards 0.9280/0.9300 early in the week, Westpac Global Strategy Team remains optimistic about the bullish prospects on the month, noting 0.96 is still achievable.
Key Quotes
"US payrolls was the biggest driver of AUD movement last week but we suspect it is a range changer rather than trend changer."
"The RBA retains a mild easing bias but rates markets aren’t seriously considering a move even by Feb (20% chance). Australian data flow near term should be mixed rather than notably weak, while China’s Oct data round suggests no nasty surprises on Chinese demand any time soon, limiting downside on commodity prices."
"We very much doubt the FOMC will seriously consider ‘tapering’ next month, with recent market talk likely to fade once more, perhaps as soon as Thu’s Yellen testimony. Hence while AUD/USD could test 0.9280/0.9300 early in the week, we maintain an upward bias on the month, with 0.96 still achievable."
Key Quotes
"US payrolls was the biggest driver of AUD movement last week but we suspect it is a range changer rather than trend changer."
"The RBA retains a mild easing bias but rates markets aren’t seriously considering a move even by Feb (20% chance). Australian data flow near term should be mixed rather than notably weak, while China’s Oct data round suggests no nasty surprises on Chinese demand any time soon, limiting downside on commodity prices."
"We very much doubt the FOMC will seriously consider ‘tapering’ next month, with recent market talk likely to fade once more, perhaps as soon as Thu’s Yellen testimony. Hence while AUD/USD could test 0.9280/0.9300 early in the week, we maintain an upward bias on the month, with 0.96 still achievable."