Long GBP/AUD to play upcoming AUD weakness - Westpac

By FXstreet.com | July 07, 2014 AAA

FXStreet (Bali) - Westpac's preferred trade remains to play a long position on the Sterling vs the Australian Dollar.



Key Quotes



"The break of 0.9450 last week arguably left the market long ahead of significant risk events."



"Lousy readings on exports and retail sales were followed by RBA Gov Stevens’ pointed warning to AUD bulls. Our preferred trade remains short AUD vs GBP."



"AUD should be soft on crosses at least until Thu when we expect the Aust jobs data to be above consensus. Pricing for a rate cut by Dec lingers around 40% but we expect no more cuts."



"AUD/USD could probe 0.93 or just below early in the week but should be boosted by the jobs data. The USD tone is still not strong either (esp. vs Asia), limiting Aussie downside. Multi-day/week range say 0.9250-0.9500."



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