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22 Apr 2013
Forex Flash: AUD/USD primed to probe 1.0150/200 – Westpac
FXstreet.com (Barcelona) - According to Global FX Strategist Sean Callow at Westpac, “The stabilization in gold is helpful but base metals remain fragile, dovetailing with the China GDP disappointment. Unless China’s Apr flash PMI is well above forecasts, the AUD/USD looks set to probe 1.0150/1.0200 over the week.”
Meanwhile, the AU outright 3-year bonds ran into strong resistance at 200-day MA (2.67%). “While we think the subsequent sell-off can continue in the very near term, longer term we continue to favor buying price dips. Expect positioning to remain light ahead of Wednesday’s CPI and a holiday shortened week.” Callow adds.
Finally, the AU curve remains within its old 50-63bp range. While we have a better bias towards flatteners, we are not expecting the range to break in coming days.
Meanwhile, the AU outright 3-year bonds ran into strong resistance at 200-day MA (2.67%). “While we think the subsequent sell-off can continue in the very near term, longer term we continue to favor buying price dips. Expect positioning to remain light ahead of Wednesday’s CPI and a holiday shortened week.” Callow adds.
Finally, the AU curve remains within its old 50-63bp range. While we have a better bias towards flatteners, we are not expecting the range to break in coming days.