3 Dec 2014
AUD tumbling – SG
FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Research at Societe Generale, sees AUD/USD likely to test the bottom of the two year declining channel at 0.8330/35 levels, which would add further pressure on the pair.
Key Quotes
“Australia saw real GDP growth slow to 0.3pct q/q, much lower than expected and taking annual growth to 2.7pct. There were downward revisions to back data and as economists ponder whether the outlook is bleak enough to prompt another rate cut in February, the currency market is simply selling the currency. The RBA would prefer a weaker currency than lower rates anyway. AUD/USD is now likely to test the bottom of a two-year declining channel at 0.8330/35. A break of this level would be a powerful bearish signal.”
Key Quotes
“Australia saw real GDP growth slow to 0.3pct q/q, much lower than expected and taking annual growth to 2.7pct. There were downward revisions to back data and as economists ponder whether the outlook is bleak enough to prompt another rate cut in February, the currency market is simply selling the currency. The RBA would prefer a weaker currency than lower rates anyway. AUD/USD is now likely to test the bottom of a two-year declining channel at 0.8330/35. A break of this level would be a powerful bearish signal.”