4 Dec 2014
AUD/USD: Drop into the low 0.80s increasingly likely - RBS
FXStreet (Bali) - With AUD/USD firmly in control, RBS FX Strategists see a drop in AUD into the low 0.80s as increasingly likely.
Key Quotes
"The AUD touched new multi-year lows today after weakness in third-quarter GDP growth data highlighted the impact of falling commodity prices and a retrenchment in mining investment."
"The RBA maintained its neutral stance on the policy rate earlier this week, repeating language that a period of stability in interest rates remains the most prudent course."
"Still, the growth data this week and indications from both RBA speeches and their statement that the RBA remains uncomfortable with the strength of the AUD have increased the risk of a dovish turn in language by the RBA."
"The busy data week continues in Australia during the Asia session with October retail sales growth and the trade balance. We see a drop in AUD into the low 0.80s as increasingly likely."
Key Quotes
"The AUD touched new multi-year lows today after weakness in third-quarter GDP growth data highlighted the impact of falling commodity prices and a retrenchment in mining investment."
"The RBA maintained its neutral stance on the policy rate earlier this week, repeating language that a period of stability in interest rates remains the most prudent course."
"Still, the growth data this week and indications from both RBA speeches and their statement that the RBA remains uncomfortable with the strength of the AUD have increased the risk of a dovish turn in language by the RBA."
"The busy data week continues in Australia during the Asia session with October retail sales growth and the trade balance. We see a drop in AUD into the low 0.80s as increasingly likely."