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May 8, 2013
Forex Flash: AUD/USD could probe parity in near-term – Westpac
FXstreet.com (Barcelona) - The RBAs May rate cut and hint of more to come is sending the cash rate into new territory. According to Global FX Strategist Sean Callow at Westpac, “While hardly a killer blow for the AUD/USD in a world of ultra low yields, this dovish outlook should see a probe of 1.00-1.0100 near term.”
There should still be bouts of strength in AUD/USD multi-month however, as Fed and BoJ QE continues full pace, creating spillover AUD demand that could easily see at least a temporary return to 1.03-1.0400.
“The AUD/USD is of course well below its major moving averages. Short-term support looks to lay around 1.0115 (4 Mar intraday low) then 1.0000. Multi-week resistance should come in around 1.0380/00, which has been a solid cap on the Aussie since the gold price “flash crash” in mid-April.” Callow adds.
There should still be bouts of strength in AUD/USD multi-month however, as Fed and BoJ QE continues full pace, creating spillover AUD demand that could easily see at least a temporary return to 1.03-1.0400.
“The AUD/USD is of course well below its major moving averages. Short-term support looks to lay around 1.0115 (4 Mar intraday low) then 1.0000. Multi-week resistance should come in around 1.0380/00, which has been a solid cap on the Aussie since the gold price “flash crash” in mid-April.” Callow adds.