22 Jul 2013
Flash: AUD/USD could target 0.9300 – Westpac
FXstreet.com (New York) - Global FX Strategist Sean Callow at Westpac speculates the outlook of the AUD and looks at rates in Australia.
Key quotes
“Specs’ record short AUD stance in futures should lend support to AUD at times this week, with potential for 0.9300/50 on any broad USD selloff. However news flow probably won’t help AUD’s cause much, with Australian CPI set to leave the door open for an Aug RBA cut and China PMI unlikely to bounce much. Buy dips under 0.9100.”
With regards to the AU outright, “Westpac is predicting a benign inflation report, with the core rate expected to drop to an annual level of 2.3%. This, combined with the wording of the July RBA Minutes, recent global developments and the prospects for a more stable currency point to the RBA lowering the cash rate at the August meeting. This should keep a cap on front-end yields.”
Key quotes
“Specs’ record short AUD stance in futures should lend support to AUD at times this week, with potential for 0.9300/50 on any broad USD selloff. However news flow probably won’t help AUD’s cause much, with Australian CPI set to leave the door open for an Aug RBA cut and China PMI unlikely to bounce much. Buy dips under 0.9100.”
With regards to the AU outright, “Westpac is predicting a benign inflation report, with the core rate expected to drop to an annual level of 2.3%. This, combined with the wording of the July RBA Minutes, recent global developments and the prospects for a more stable currency point to the RBA lowering the cash rate at the August meeting. This should keep a cap on front-end yields.”