Market outlook: Aussie bears efforts not sustained - Westpac

Analysts at Westpac offered a market outlook for the antipodeans in the forthcoming session and further out.

Key Quotes:

"AUD/USD 1 day:  Yesterday’s break below 0.7600 was not sustained. We look for that level to hold again today.

AUD/USD 1-3 month: The RBA’s easing bias combined with the Fed’s tightening bias should push the AUD lower towards 0.74 by year end, although recent BOE and BOJ easing have made the AUD even more attractive to global investment flows such that a test of 0.78 is possible first.

NZD/USD 1 day: A retest of the tough 0.7325 area is possible today. The Wheeler speech poses major event risk.

NZD/USD 1-3 month:  The RBNZ’s easing cycle combined with the Fed tightening in December should push the NZD lower towards 0.70 by year end, although recent BOE and BOJ easing have made the NZD even more attractive to global investment flows such that a break above 0.74 is possible first.

AUD/NZD 1 day: Downward momentum, targets 1.0450.

AUD/NZD 1-3 month: The RBNZ is likely to cut again in November, and should maintain a more dovish outlook than the RBA. In addition, the cross is well below fair value implied by interest rates, commodity prices and risk sentiment. We target 1.08."