Forex Flash: AUD/USD, very serious risk to seek 1.06 in the coming days - NAB
FXstreet.com (Barcelona) - The break higher in AUDUSD to a high of 1.0516, as NAB strategists note, "is the direct result of the crunch lower in EURAUD and which undid a 4-5 day rally in the cross in a heartbeat."
NAB expands: "Some local exporters coming into see the AUD having traded comfortably on a 1.05 handle may feel compelled to bite the bullet and give up on hopes for being able to repatriate overseas earnings at better levels before calendar year end."
The bank sees now a very serious risk that AUDUSD will resume its rally towards the 1.06 area in coming days. NAB tips 1.0519 (the Sep 21 high) marks immediate resistance, with the 1.0560-70 area tougher resistance ahead of the round number.
NAB expands: "Some local exporters coming into see the AUD having traded comfortably on a 1.05 handle may feel compelled to bite the bullet and give up on hopes for being able to repatriate overseas earnings at better levels before calendar year end."
The bank sees now a very serious risk that AUDUSD will resume its rally towards the 1.06 area in coming days. NAB tips 1.0519 (the Sep 21 high) marks immediate resistance, with the 1.0560-70 area tougher resistance ahead of the round number.
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