Forex Flash: USD Under pressure as Europe enjoys reprieve – Westpac
FXstreet.com (Barcelona) - The Westpac strategy team note that USD is under some pressure as Europe takes a break from being in the line of fire but expectations still seem too high for an early fiscal deal in the US, which should help limit USD losses as the squabbling continues.
Looking at AUDUSD, the team note that finally attention has returned to domestic news as the pair enters into a jammed calendar. They believe that this week's data should reinforce expectations for further RBA easing after the expected move on Tuesday but broad risk appetite seems strong enough to limit ranges to low 1.03s to low 1.05s.
Moving to NZDUSD, they expect the pair to weaken over the next week from 0.8215 towards 0.8050, weighed down by US and Australian events with only partial offset from the RBNZ MPS.
Heading to Europe, the team don't see the fuel for sustained gains beyond 1.3050-0.3100 ahead of the ECB meeting on Thursday but they note that Spain's bond rally does provide encouragement for the Euro.
Looking to Asia, the USDJPY 82 handle is becoming increasingly familiar as speculators persist with large long positions. They feel that some disappointment looms but probably not before the election on the 16th December and/or the BoJ meeting on the 20th.
Looking at AUDUSD, the team note that finally attention has returned to domestic news as the pair enters into a jammed calendar. They believe that this week's data should reinforce expectations for further RBA easing after the expected move on Tuesday but broad risk appetite seems strong enough to limit ranges to low 1.03s to low 1.05s.
Moving to NZDUSD, they expect the pair to weaken over the next week from 0.8215 towards 0.8050, weighed down by US and Australian events with only partial offset from the RBNZ MPS.
Heading to Europe, the team don't see the fuel for sustained gains beyond 1.3050-0.3100 ahead of the ECB meeting on Thursday but they note that Spain's bond rally does provide encouragement for the Euro.
Looking to Asia, the USDJPY 82 handle is becoming increasingly familiar as speculators persist with large long positions. They feel that some disappointment looms but probably not before the election on the 16th December and/or the BoJ meeting on the 20th.
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