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9 Feb 2015
Outlook: AUD crosses – ANZ
FXStreet (Barcelona) - The ANZ Team gives the outlook for the AUD crosses, and shares the fundamental drivers for the pairs.
Key Quotes
“AUD/USD: The US remains strong, while the Australian domestic economy is tepid. This week’s confidence reports will likely show that the initial impact of the RBA’s easing is being swamped by political uncertainty. The recent stabilisation in the AUD is not likely to last.
Expected range: 0.7670 – 0.7880”
“AUD/EUR: The stronger US data dragged the EUR sharply lower. With Greek political uncertainty also remaining a source of volatility for the EUR. That said, the recent outperformance of the AUD has few fundamental underpinnings and should fade.
Expected range: 0.6740 – 0.7000”
“AUD/JPY: The divergence between the BoJ and Fed’s expected monetary policy settings continues to widen and should continue to underpin further JPY weakness.
Expected range: 90.80 – 93.90”
“AUD/GBP: There has already been a significant re-pricing in markets for the timing of the BoE’s first rate hike, due to weaker inflation outcomes, suggesting the BoE’s quarterly inflation report is unlikely to drive further GBP weakness. Risks remain to the downside for this cross.
Expected range: 0.5030 – 0.5190”
Key Quotes
“AUD/USD: The US remains strong, while the Australian domestic economy is tepid. This week’s confidence reports will likely show that the initial impact of the RBA’s easing is being swamped by political uncertainty. The recent stabilisation in the AUD is not likely to last.
Expected range: 0.7670 – 0.7880”
“AUD/EUR: The stronger US data dragged the EUR sharply lower. With Greek political uncertainty also remaining a source of volatility for the EUR. That said, the recent outperformance of the AUD has few fundamental underpinnings and should fade.
Expected range: 0.6740 – 0.7000”
“AUD/JPY: The divergence between the BoJ and Fed’s expected monetary policy settings continues to widen and should continue to underpin further JPY weakness.
Expected range: 90.80 – 93.90”
“AUD/GBP: There has already been a significant re-pricing in markets for the timing of the BoE’s first rate hike, due to weaker inflation outcomes, suggesting the BoE’s quarterly inflation report is unlikely to drive further GBP weakness. Risks remain to the downside for this cross.
Expected range: 0.5030 – 0.5190”