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Forex Flash: Aus deficit around expectations to be received calmly by AUD - Westpac

FXstreet.com (Barcelona) - Australia’s annual federal budget (9.30GMT) is expected to show, according to Sean Callow, FX strategist at Westpac, "a headline -A$14bn deficit in 2012/13 (-0.9%/GDP), a sharp narrowing from 2011/12’s -$43.7bn but of course well short of the surplus promised until Dec 2012" the bank notes.

Sean adds: "Revenue has fallen short, mostly due to lower receipts from company, petroleum and mining taxes. A one year delay in the auction of digital spectrum rights also cut receipts by $4bn but will help 2013/14’s bottom line, which we project to be -$8bn (-0.5%/GDP). Spending appears to have actually undershot the mid-year review by about $1bn."

The bank's analyst concludes that "a deficit around our expectations should be received calmly by AUD and bond markets, especially as the major ratings agencies are likely to reaffirm Australia’s AAA rating some time in the London session."

Forex: Kiwi continues to slide, now trading at lowest levels since late March

The Kiwi continued its decline today, closing down 22 pips at 0.8252. This was the lowest close for the pair since March 20th, 2013. Earlier in the session NZ Retail Sales were released at 22:45GMT. The pair was trading as high as 0.8270 before the report but has now leaked lower is back to flat at 0.8248.
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Forex Flash: USD/CAD may be setting up for a push higher later in the week – TD Securities

The USD/CAD traded in a fairly wide range today, but closed flat at 1.0104. The pair was coming off of sharp gains the previous two days, and may be in for some consolidation in the near term before posting a new leg up.
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