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7 Mar 2014
Flash: AUD/USD: cautious in the longer term – UBS
FXStreet (Córdoba) - The UBS analyst team said they remain cautious on the AUD/USD in the longer term, as we expect the USD strength to gain momentum later this year.
Key Quotes
"The AUD was boosted by stronger Australian trade surplus data, which rose to AUD1.4bn in January from AUD591mn in December. Retail sales rose strongly by 1.2%m/m in January, likely due to loose monetary conditions".
"While rising exports supports the AUD, we doubt it can fully compensate the drag from sharply falling mining investment inflows".
"We remain cautious on the AUDUSD in the longer term, as we expect the USD strength to gain momentum later this year on the back of Fed rate hike prospects".
Key Quotes
"The AUD was boosted by stronger Australian trade surplus data, which rose to AUD1.4bn in January from AUD591mn in December. Retail sales rose strongly by 1.2%m/m in January, likely due to loose monetary conditions".
"While rising exports supports the AUD, we doubt it can fully compensate the drag from sharply falling mining investment inflows".
"We remain cautious on the AUDUSD in the longer term, as we expect the USD strength to gain momentum later this year on the back of Fed rate hike prospects".