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12 Aug 2013
Flash: AUD/USD squeeze set to extend; targets at 0.93/0.95 - RBS
FXstreet.com (Barcelona) - According to Greg Gibbs, FX Strategist at RBS, for the near term, the AUD looks poised to appreciate further to squeeze out what may be excessive short positions.
Key Quotes
"This could take AUD up to test the key resistance at around 0.93, and as high as 0.95. However, we continue to forecast 0.83 at year end. AUD key resistance at around .9290/.9300, and 38.2% retracement level near 0.95. First Support .9130."
"If the CME futures market is any guide, positioning in AUD is excessively short. On Tuesday last week, just after the RBA cut rates, net shorts were at a record."
"Chinese commodity indicators have been generally stronger for the last two months, consistent with the better than expected industrial activity data reported last week. Chinese equities have been stable to stronger for two months. Global resource equities have been rising for the last month and a half and reached a high since Q1 last week."
Key Quotes
"This could take AUD up to test the key resistance at around 0.93, and as high as 0.95. However, we continue to forecast 0.83 at year end. AUD key resistance at around .9290/.9300, and 38.2% retracement level near 0.95. First Support .9130."
"If the CME futures market is any guide, positioning in AUD is excessively short. On Tuesday last week, just after the RBA cut rates, net shorts were at a record."
"Chinese commodity indicators have been generally stronger for the last two months, consistent with the better than expected industrial activity data reported last week. Chinese equities have been stable to stronger for two months. Global resource equities have been rising for the last month and a half and reached a high since Q1 last week."