Forex Flash: AUD/USD likely to retest 1.0100 region – Westpac

FXstreet.com (Barcelona) - Primary markets remained quiet this week with no new securitization or covered bond transactions from Australian issuers. Regarding the regulatory changes, Moody's released a report declaring them positive for Australian banks as it will compel them to hold more capital

According to Westpac Analyst Robert Rennie, "Amidst the recent European headlines, the market is right to continue to price a large 'European risk premium' into the AUD front-end".

The pair's meteoric rise last week, culminating in a high of 1.0444 Thursday last week will be tough to beat. "Likely, a retest back towards 1.0100/50 range looks to be on the cards - we still remain neutral on near term direction." adds Rennie.