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26 Apr 2016
Action in the antipodeans and outlook - Westpac
Analysts at Westpac explained price action overnight in the Antipodeans.
Key Quotes:
"AUD/USD fell from 0.7760 in Friday New York trade to just above 0.7700 into Australia’s long weekend, then spent Monday offshore trade in the low 0.77 area."
"We expect the Aussie to chop higher this week, recapturing the 0.78 handle, with CPI likely to leave pricing for an RBA rate cut next week low, iron ore prices still elevated, the US dollar to emerge from the FOMC meeting and Q1 GDP a little softer and the Bank of Japan to announce at least some risk-positive policy tweaks."
"NZD/USD consolidated its Friday selloff in the mid-0.68s, leaving AUD/NZD around 1.1255/70, trading highs since 23 March. rose from 1.1210 to 1.1272 – a one-month high. Markets price about a 1/3 chance of the RBNZ cutting the cash rate on Thursday."
Key Quotes:
"AUD/USD fell from 0.7760 in Friday New York trade to just above 0.7700 into Australia’s long weekend, then spent Monday offshore trade in the low 0.77 area."
"We expect the Aussie to chop higher this week, recapturing the 0.78 handle, with CPI likely to leave pricing for an RBA rate cut next week low, iron ore prices still elevated, the US dollar to emerge from the FOMC meeting and Q1 GDP a little softer and the Bank of Japan to announce at least some risk-positive policy tweaks."
"NZD/USD consolidated its Friday selloff in the mid-0.68s, leaving AUD/NZD around 1.1255/70, trading highs since 23 March. rose from 1.1210 to 1.1272 – a one-month high. Markets price about a 1/3 chance of the RBNZ cutting the cash rate on Thursday."