4 Jun 2015
AUD/USD sell the rallies towards 0.7800/50 – Westpac
FXStreet (Edinburgh) - Strategist Sean Callow at Westpac recommends selling spot on bullish attempts towards the 0.7800/50 band.
Key Quotes
“The RBA statement stopped the rot for AUD/USD after a >5 cent decline from mid-May highs”.
“Any easing bias was well hidden among talk of stronger consumption and housing construction, with the reference to AUD decline being largely ignored”.
“But overall the data momentum has faltered again and Governor Stevens is likely to leave the door open for further easing, just not soon”.
“Pricing for a cut by Nov should remain over 50%. US payrolls and a possible Greece deal could generate some AUD/USD volatility, but overall the bias remains to sell rallies”.
“On the topside we look for 0.7800/50 to cap, with downside scope for probes of 0.7550/0.7600”.
Key Quotes
“The RBA statement stopped the rot for AUD/USD after a >5 cent decline from mid-May highs”.
“Any easing bias was well hidden among talk of stronger consumption and housing construction, with the reference to AUD decline being largely ignored”.
“But overall the data momentum has faltered again and Governor Stevens is likely to leave the door open for further easing, just not soon”.
“Pricing for a cut by Nov should remain over 50%. US payrolls and a possible Greece deal could generate some AUD/USD volatility, but overall the bias remains to sell rallies”.
“On the topside we look for 0.7800/50 to cap, with downside scope for probes of 0.7550/0.7600”.