FXStreet (Edinburgh) – The bearish trend in the pair is expected to accelerate towards the 0.72 levels in the last part of the year, according to strategists at Westpac.
Key Quotes
“We maintain our core theme that the “AUD is ready to descend” and argue the factors that will see it pushing down to 0.73 by September and 0.72 by December are weaker LNG prices; weaker iron ore prices; rising concerns about the China outlook; weaker terms of trade; reduced Japanese demand; increased risk aversion from Greece/ Europe; moves towards Fed lift-off and a stronger US dollar”.
“All these factors are present to varying degrees here. Clearly, weakness in commodity and equity prices in China are very much front of mind right now”.
“However, we still think that Greece is more of a negative than markets are currently pricing too”.
(Market News Provided by FXstreet)