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Forex Flash: AUD below par later this year - RBS

FXstreet.com (Barcelona) - “The AUD is caught somewhere between a safe haven and a high beta currency,” says Greg Gibbs, FX Trading Strategist at RBS, while AUD/USD is last at 1.0426, slightly lower for the session on Chinese share markets weakness. “Stress in Europe could weaken or strengthen the AUD, depending on how much contagion there is to global markets and commodities,” Greg adds, though “The AUD TWI shot to a new high yesterday,” he notes.

“But we continue to see a peaking in the resources sector, slower growth in China and the risk that commodity prices fall further later this year,” the analyst expands, adding: “And thus we still see AUD below par later this year. The prospect of China clamping down on its shadow banking system may be a good thing over the medium term but it in creases downside risks in the near term in China,” Mr Gibbs concludes.

Forex Flash: AUD/USD should stay supported around 1.04 – NAB/BNZ

According to National Australia Bank and Bank of New Zealand currency strategists: “The AUD continues to display complete immunity from European travails,” the analysts say, expanding: “A still positive growth story, 3% yield and distance from the epicentre of angst all serving to keep the currency supported, suggesting minimal near term harm under either risk ‘on’ or ‘off’ scenarios.”
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Forex Flash: SGD to underperform its regional peers - ANZ

With USD/SGD last at 1.2432, off Tuesday's 19 fresh 7-month highs at 1.2530, “We see SGD underperforming some of its regional peers, and retain our recommendation to go long a basket consisting of KRW, PHP and CNY against SGD,” says Khoon Goh, Senior FX Strategist at ANZ.
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