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10 Dec 2015
AUD/USD remains bearish near-term – Westpac
FXStreet (Edinburgh) - In the view of Sean Callow, Strategist at Westpac, the outlook for the Aussie dollar remains tilted to the bearish side in the near term.
Key Quotes
“The Nov jobs shock provided AUD/USD with an adrenaline shot it needed after three days of poor price action linked to commodity weakness”.
“The steep fall in oil prices after Friday’s OPEC meeting reverberated through industrial commodities and related currencies. But markets could well return commodity prices to the backburner short term, with all eyes on the FOMC”.
“There might be enough for the doves from Yellen’s press conference to squeeze USD longs a little further, supporting AUD/USD”.
“Moreover, there are no major Australian data releases until Jan, leaving the RBA’s positive outlook intact into the new year”.
“Combined with underlying AUD demand from M&A, we should see AUD/USD make another attempt to break 0.7380/85, which would open up the 200dma at 0.7450. Support around 0.72 for now. Three month bias still firmly lower”.
Key Quotes
“The Nov jobs shock provided AUD/USD with an adrenaline shot it needed after three days of poor price action linked to commodity weakness”.
“The steep fall in oil prices after Friday’s OPEC meeting reverberated through industrial commodities and related currencies. But markets could well return commodity prices to the backburner short term, with all eyes on the FOMC”.
“There might be enough for the doves from Yellen’s press conference to squeeze USD longs a little further, supporting AUD/USD”.
“Moreover, there are no major Australian data releases until Jan, leaving the RBA’s positive outlook intact into the new year”.
“Combined with underlying AUD demand from M&A, we should see AUD/USD make another attempt to break 0.7380/85, which would open up the 200dma at 0.7450. Support around 0.72 for now. Three month bias still firmly lower”.