Forex Flash: AUD unlikely to break $US1.1080/85 record highs in 2013 - TDS
FXstreet.com (Barcelona) - According to Annette Beacher, Head of Asia-Pacific Research at TDS, both the Australian and New Zealand Dollar prospects for 2013 are constructive, yet not as much as to predict fresh post-float record highs, in the case of the Aussie.
Ms Beacher notes: "Rather than forecast a further substantial rally from here, however, we forecast 'more of the same' for the Antipodeans that we've seen over the last two years, with 2013 averages to be around $US1.03 and $US0.83 respectively."
"Lofty claims that the AUD can top $US1.20 or higher, for example, we believe is wide of the mark" says Annette. She reminds us that the extraordinary levels the AUD achieved vs the USD at $US1.1080/85 in late July 2011 were "a combination of a debt-laden anti-USD trade and a strong Australian inflation report raising expectations of an imminent RBA hike."
"While we certainly cannot rule out another bout of the former, the latter has a very small probability" the Analyst concludes.
Ms Beacher notes: "Rather than forecast a further substantial rally from here, however, we forecast 'more of the same' for the Antipodeans that we've seen over the last two years, with 2013 averages to be around $US1.03 and $US0.83 respectively."
"Lofty claims that the AUD can top $US1.20 or higher, for example, we believe is wide of the mark" says Annette. She reminds us that the extraordinary levels the AUD achieved vs the USD at $US1.1080/85 in late July 2011 were "a combination of a debt-laden anti-USD trade and a strong Australian inflation report raising expectations of an imminent RBA hike."
"While we certainly cannot rule out another bout of the former, the latter has a very small probability" the Analyst concludes.
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