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Forex Flash: 4 possible reasons to be bullish the AUD - TDS

FXstreet.com (Barcelona) - It’s important to consider the risk scenarios that would see the AUD push even higher from current levels in H2 2013, says Singapore-based TDS analyst Alvin Pontoh.

Mr. Pontoh notes: "We outline four possible reasons to be bullish on the AUD below, in the order of most to least plausible 1) BOJ action and the carry trade (2) US recovery wobbles, QE extended (3) China accelerates, commodity price spikes (4) Strong domestic data, RBA hikes by year-end Implications."

"One key take away from the above is that further AUD strength will not necessarily be a result of a change in the RBA outlook. If a strong AUD is being driven by scenarios (1) to (3), i.e. external factors, further rate cuts — to support the economy, not to lower the currency — cannot be ruled out" the analyst adds.

Forex: EURJPY advances for 6th day in a row, prints new highs above 131.00

The EURJPY continued its advance during the New York session closing up 40 pips at 130.79. Late in the session the pair briefly printed new highs of 131.12 before sliding slightly lower the last few hours of the day. Economic news out of Japan will be in focus, with the Tertiary industry Index being released at 23:50 GMT. Furthermore, Bank of Japan Governor Kuroda will be giving a speech about “Monetary Policies in Tokyo” at 3:10GMT. Kuroda’s comments could influence the pair later in the session, and it will be important to see if he deviates from previous statements made earlier this week
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Japan: Tertiary Industry Index (MoM) (Feb): 1.1% vs -1.1%

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