9 Jun 2015
AUD/USD downtrend to resume soon – RBS
FXStreet (Barcelona) - Greg Gibbs of RBS, explains that the commodity market deterioration suggests a bearish turn might be right around the corner for AUD/USD.
Key Quotes
“The Australian share market is showing the strains of weak income growth. Bank share prices are down sharply facing greater regulatory scrutiny including cooling lending for housing investment and raising more capital.”
“The energy and material sectors are suffering from further deterioration in commodity markets. Even though iron ore prices have firmed in recent months, steel prices in China continue to slide and global competition in over-supplied markets is intensifying.”
“We think the AUD down-trend will soon resume, although this week the employment data in Australia may set the tone. Employment data has been more stable this year, but is difficult to predict.”
Key Quotes
“The Australian share market is showing the strains of weak income growth. Bank share prices are down sharply facing greater regulatory scrutiny including cooling lending for housing investment and raising more capital.”
“The energy and material sectors are suffering from further deterioration in commodity markets. Even though iron ore prices have firmed in recent months, steel prices in China continue to slide and global competition in over-supplied markets is intensifying.”
“We think the AUD down-trend will soon resume, although this week the employment data in Australia may set the tone. Employment data has been more stable this year, but is difficult to predict.”