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Forex pairs in this Article » AUD/USD (Barcelona) - An interesting session lies ahead for the AUD, notes NAB, as the AU/USD continues its incessant rally. The highest in the pair has been printed at 1.0599, which makes it the most expensive rate since Sep 14 2012, and as NAB observes, "AUDUSD has only spent two days trading above 1.06 intra-day since mid-March of last year."

NAB expands: "The move co-coincides with a scaling back of February rate cut expectations after yesterday's China data, (from 40% to 34%). We suspect the market may well be forced to reassess this risk when the domestic data calendar starts to roll out in coming weeks and it becomes clearer that the economy was almost on its knees heading into year end."

As such, NAB thinks that "even if we do move onto a 1.06 handle at some point today, our call is that these latest gains will not hold and that we will come back down beneath an effective 1.06 range high in coming sessions."
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