Forex Flash: Disappointment seems likely in markets - Westpac

FXstreet.com (Barcelona) - Neither the ECB nor the Fed seem set to deliver for now, according to Westpac FX strategist. "Given US equities near 4 year highs, at least some disappointment seems likely in markets, softening risk currencies" the bank said.

"A modest pullback in risk appetite should help the safe haven dollar, allowing DXY to avoid a break of 81.15 support. Meanwhile, soggy Chinese demand for Australia's #1 export iron ore should keep AUD under pressure, with a test of 1.0180/1.0200 likely. NZD is less directly affected by China's soft summer but scratchy risk sentiment will undermine both currencies" Westpac adds.