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23 Apr 2014
AUD/USD: Sharp correction not expected - Westpac
FXStreet (Bali) - Westpac Global Strategy Group continues to hold a constructive view on the AUD/USD, noting that even if the rate gets cheaper, they don't see a sharp correction underway.
Key Quotes
"As broad USD sentiment starts to stabilize with help from better data momentum (US data pulse near 60%), the Aussie is easing lower. Westpac’s core CPI forecast is in line with consensus so should not produce a huge move."
"The Aussie is probably near the top of multi-month ranges, with 0.9450/60 now more likely than a 0.95 handle on the topside. But while some further soft China data could see a drift to 0.9250/75 near term, we don’t see a sharp correction, given decent underlying strength in Australia’s economy keeping the RBA on hold and limiting the danger of AUD jawboning."
Key Quotes
"As broad USD sentiment starts to stabilize with help from better data momentum (US data pulse near 60%), the Aussie is easing lower. Westpac’s core CPI forecast is in line with consensus so should not produce a huge move."
"The Aussie is probably near the top of multi-month ranges, with 0.9450/60 now more likely than a 0.95 handle on the topside. But while some further soft China data could see a drift to 0.9250/75 near term, we don’t see a sharp correction, given decent underlying strength in Australia’s economy keeping the RBA on hold and limiting the danger of AUD jawboning."