Forex Flash: Bearish AUD views better expressed through crosses - NAB
FXstreet.com (Barcelona) - The AUDUSD traded soft throughout Thursday, after an early attempt to burst through 1.0480 stiff resistance by buyers being greeted by committed sellers once again. The pair ends at near 1.0420 lows.
According to NAB strategists, "yesterday's Q3 capex data, specifically the downward revision to estimates for the rest of the current fiscal year, initially prompted a bigger reaction in the rates market than the currency market, with expectations for a quarter point cut next Tuesday moved out to above 70%."
Private sector credit data will be the highlight in Australia, "with the swings in business lending in recent months (down then back up) being points of discussion in recent RBA minutes" the bank notes. A 0.3% rise in overall credit is expected (NAB +0.2%).
The Aussie looks poised to continue its heaviness, the bank suspects, "although in the context of a still-soft USD, bearish AUD views are going to better expressed on various crosses (e.g. AUD/EUR and AUDNZD) than outright AUDUSD shorts" NAB adds.
According to NAB strategists, "yesterday's Q3 capex data, specifically the downward revision to estimates for the rest of the current fiscal year, initially prompted a bigger reaction in the rates market than the currency market, with expectations for a quarter point cut next Tuesday moved out to above 70%."
Private sector credit data will be the highlight in Australia, "with the swings in business lending in recent months (down then back up) being points of discussion in recent RBA minutes" the bank notes. A 0.3% rise in overall credit is expected (NAB +0.2%).
The Aussie looks poised to continue its heaviness, the bank suspects, "although in the context of a still-soft USD, bearish AUD views are going to better expressed on various crosses (e.g. AUD/EUR and AUDNZD) than outright AUDUSD shorts" NAB adds.
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