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23 Sep 2013
Flash: AUD/USD driven by the global mood, which we expect to be USD negative –Westpac Global Strategy Group
FXstreet.com (Athens)- Westpac Global Strategy Group recommends that the local calendar will offer no inspiration, leaving AUD/USD driven by the global mood, which we expect to be mostly USD-negative.
Key Quotes
“Fed comments will generate volatility but we doubt the notion of an Oct ‘taper’ will gain much traction, with US data flow too mixed. Multi-day target is 0.9557 (19 June high), 1 month target 0.96. Wild card is US budget & debt negotiations, with risks skewed firmly to the downside for AUD.”
“The driver of the AU-US 10yr spread continues to oscillate between AU and US yields. Eventually we would expect the ‘traditional’ relationship to re-exert itself whereby the spread widens on US rallies and tightens in bear markets
Key Quotes
“Fed comments will generate volatility but we doubt the notion of an Oct ‘taper’ will gain much traction, with US data flow too mixed. Multi-day target is 0.9557 (19 June high), 1 month target 0.96. Wild card is US budget & debt negotiations, with risks skewed firmly to the downside for AUD.”
“The driver of the AU-US 10yr spread continues to oscillate between AU and US yields. Eventually we would expect the ‘traditional’ relationship to re-exert itself whereby the spread widens on US rallies and tightens in bear markets