Short AUD on crosses, particularly vs GBP - Westpac

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Bali) - Stevens’ reference to “ammunition” to lower the cash rate again helped drive markets to price a 50% chance of a rate cut by year-end, notes Sean Callow, FX Strategist at Westpac.



Key Quotes



Along with the stronger language on AUD, this reinforces our existing preference to be short AUD on crosses, particularly versus GBP.



But the extent of the bearishness is tempered by our base case that rates remain on hold into 2015.



Next week’s June jobs data and the Q2 CPI on 23 July will of course be important ahead of the Aug RBA meeting and Statement on Monetary Policy.



You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    GBP/USD unperturbed by impressive UK data

  2. Forex News

    Sterling rally taking a breather – KBC

  3. Forex News

    GBP/USD steadies below 1.54, UK data in focus

  4. Investing

    GBP/USD Falls During Monday Session

  5. Forex News

    GBP/USD breaches the rising channel despite upbeat UK PMI – FXStreet

Trading Center