Forex Flash: AUD/USD, extreme complacency remains - Saxo Bank
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AUD/USD
FXstreet.com (Barcelona) - Unless the market breaks what John Hardy, Head of FX Strategy at Saxo Bank, defines as "an environment of extreme complacency," it's hard to imagine the AUDUSD will break sharply lower, the analyst says.
Mr. Hardy add: "If the FOMC today triggers a decline in risk appetite or a belief that the Fed is leaning towards more caution on expanding its balance sheet (or both - as those two outcomes would likely go hand-in-hand), then the downside could open up again. A further melt-up in risk appetite, on the other hand, is what is likely needed to have a go at the 1.0600 and beyond."
Mr. Hardy add: "If the FOMC today triggers a decline in risk appetite or a belief that the Fed is leaning towards more caution on expanding its balance sheet (or both - as those two outcomes would likely go hand-in-hand), then the downside could open up again. A further melt-up in risk appetite, on the other hand, is what is likely needed to have a go at the 1.0600 and beyond."
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