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22 May 2014
AUD/USD: A sell on rallies - RBS
FXStreet (Bali) - Greg Gibbs, FX Strategist at RBS, is currently on the sidelines on AUD/USD, but still favours selling the pair on strength.
Key Quotes
"AUD has dropped sharply since Tuesday in what appears largely a delayed reaction to weak Chinese monthly activity data for April, weaker iron ore price, a somewhat more dovish tone in recent RBA statements, and a public backlash against the first budget released by the Liberal National coalition government elected in September last year."
"The Chinese PMI data today will be important, but the market is more neutral on the Chinese outlook as recent announcements point to easier monetary conditions. AUD is yet to show much bounce this week, but it is sitting near key supports just above .9200, and thus it is best to stay on the sidelines awaiting fresh news. We would be inclines to sell strength, but at this stage until nearer .9320."
Key Quotes
"AUD has dropped sharply since Tuesday in what appears largely a delayed reaction to weak Chinese monthly activity data for April, weaker iron ore price, a somewhat more dovish tone in recent RBA statements, and a public backlash against the first budget released by the Liberal National coalition government elected in September last year."
"The Chinese PMI data today will be important, but the market is more neutral on the Chinese outlook as recent announcements point to easier monetary conditions. AUD is yet to show much bounce this week, but it is sitting near key supports just above .9200, and thus it is best to stay on the sidelines awaiting fresh news. We would be inclines to sell strength, but at this stage until nearer .9320."