5 Sep 2013
Flash: Short-term AUD/USD rebound a mirage – UBS
FXstreet.com (Lisbon) - Even though the AUD/USD has seen a mini-rebound over the past 48 hours, there are reasons to remain cautious on the currency on a longer-term horizon.
Key quotes
“Earlier this week for example, retail sales in Australia disappointed again.
That’s five months in a row now and it supports the RBA’s view that further currency weakness will be needed to rebalance the economy away from its dependence on mining investment as a source of growth.”
“The AUD is still a sell on rallies in our view, and our 1-month and 3-month
AUD/USD forecasts remain at 0.8800.”
Key quotes
“Earlier this week for example, retail sales in Australia disappointed again.
That’s five months in a row now and it supports the RBA’s view that further currency weakness will be needed to rebalance the economy away from its dependence on mining investment as a source of growth.”
“The AUD is still a sell on rallies in our view, and our 1-month and 3-month
AUD/USD forecasts remain at 0.8800.”