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

    Weekly Trading Forecast: FOMC, GDP, Greece and Much More Ahead

  2. Forex News

    British Pound Likely to Rally Further, but Watch these Two Key Risks

  3. Forex News

    Strategy Video: Can We Still Trade Amid Central Banks, HFT, Exuberance

  4. Forex News

    UK Election Campaign unfolding neck and neck - TDS

  5. Forex News

    Key UK events next week; Manufacturing PMI - TDS

Trading Center