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28 Feb 2014
Flash: AUD/USD should struggle to break above 0.90 - Westpac
FXStreet (Bali) - The partial indicators for Q4 GDP in Australia (which is out next Wed) have not been positive, with both construction work done and CAPEX surprising on the downside. notes Sean Callow, FX Strategist at Westpac.
Key Quotes
"Our economists are sticking with a 0.9% forecast but upside risks have now been removed. This suggests AUD/USD will struggle to break back above 0.90¢, although with an improvement in risk appetite dips back towards the 50 day moving average, which comes in at 0.8911, should remain well supported. NZD/USD looks set to press higher, aided by fresh downside momentum in AUD/NZD and a potential break above the 0.8400¢ level."
Key Quotes
"Our economists are sticking with a 0.9% forecast but upside risks have now been removed. This suggests AUD/USD will struggle to break back above 0.90¢, although with an improvement in risk appetite dips back towards the 50 day moving average, which comes in at 0.8911, should remain well supported. NZD/USD looks set to press higher, aided by fresh downside momentum in AUD/NZD and a potential break above the 0.8400¢ level."