29 Apr 2014
AUD/USD should recover from current setback - Westpac
FXStreet (Bali) - Q2 CPI was a setback for the Aussie but not a game changer, notes the FX Strategy Team at Westpac.
Key Quotes
"There is no serious discussion of the RBA resuming an easing bias and a rate hike remains fully priced by July 2015, with yields overall only moderately lower post-CPI."
"It does however lower trading ranges slightly, to say AUD/USD 0.9200-0.9450 rather than making a final lunge at 0.9500."
"Australia’s largely empty data calendar this week leaves attention on China PMI and the broad USD tone, which should be a little weaker early in the week, perhaps improving only if non-farm payrolls beats (already high) expectations."
Key Quotes
"There is no serious discussion of the RBA resuming an easing bias and a rate hike remains fully priced by July 2015, with yields overall only moderately lower post-CPI."
"It does however lower trading ranges slightly, to say AUD/USD 0.9200-0.9450 rather than making a final lunge at 0.9500."
"Australia’s largely empty data calendar this week leaves attention on China PMI and the broad USD tone, which should be a little weaker early in the week, perhaps improving only if non-farm payrolls beats (already high) expectations."