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24 Jun 2013
Flash: AUD/USD downtrend to be sustained - NAB
FXstreet.com (Barcelona) - The clarity provided by Bernanke's speech last week with regard to scaling down QE, greatly improves the chances of the AUD/USD downtrend being sustained, says Ray Attrill, Global Co-Head of FX Strategy at NAB.
Attrill expands: "Though AUD weakness may have been compounded by its use as a liquid proxy hedge against broader asset market exposures (in EM especially) latest moves have still not caught up with what key fundamental drivers suggest is justified - and which are liable to move further in the direction of a weaker AUD."
The NAB Strategist informed also that the NAB AUD/USD forecast of 0.92 by year-end is now under review, "which will almost certainly be lower than our most recently published forecasts, with AUD/USD at the end of 2013 looking like it will be trading below 90 cents" Attrill said.
Attrill expands: "Though AUD weakness may have been compounded by its use as a liquid proxy hedge against broader asset market exposures (in EM especially) latest moves have still not caught up with what key fundamental drivers suggest is justified - and which are liable to move further in the direction of a weaker AUD."
The NAB Strategist informed also that the NAB AUD/USD forecast of 0.92 by year-end is now under review, "which will almost certainly be lower than our most recently published forecasts, with AUD/USD at the end of 2013 looking like it will be trading below 90 cents" Attrill said.