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20 Sep 2013
Flash: AUD/USD is a sell on rallies towards 0.95/0.96 - ANZ
FXstreet.com (Barcelona) - For the AUD/USD, in view of Zoe McHugh and Andrew Salter, Strategists at ANZ Research, the recommendation is selling into strength towards USD0.95 and USD0.96.
Key Quotes
"The current rally in the AUD to above 0.95 is a second chance for many businesses that missed hedging foreign liabilities and expenses when the exchange rate fell from above parity earlier this year."
"Lower levels in the AUD make much more sense and fair value is much lower – around USD0.85 by end-2014 according to our estimates. Australia’s biggest export partner, China, is slowing. Alongside this commodity prices – especially those for iron ore and coal – are forecast to fall further."
"The bounce in the AUD should be temporary. Our expectation is, therefore, that the currency will depreciate to the mid USD0.80s by the end of 2014, alongside fundamentals and an eventual tapering in the US."
Key Quotes
"The current rally in the AUD to above 0.95 is a second chance for many businesses that missed hedging foreign liabilities and expenses when the exchange rate fell from above parity earlier this year."
"Lower levels in the AUD make much more sense and fair value is much lower – around USD0.85 by end-2014 according to our estimates. Australia’s biggest export partner, China, is slowing. Alongside this commodity prices – especially those for iron ore and coal – are forecast to fall further."
"The bounce in the AUD should be temporary. Our expectation is, therefore, that the currency will depreciate to the mid USD0.80s by the end of 2014, alongside fundamentals and an eventual tapering in the US."