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25 Apr 2013
Forex Flash: AUD, NZD near term risks tilted to the upside - Westpac
FXstreet.com (Barcelona) - For AUD and NZD, "the near term risks appear tilted towards the upside, particularly with key commodity markets showing signs of stability" notes Jonathan Cavenagh, FX strategist at Westpac.
Mr. Cavenagh adds: "AUD/USD has found support despite the weaker CPI print and softer China data momentum. A break above 1.0300 paves the way for a move to 1.0360 but above 1.0400 is likely to be difficult to achieve. NZD/USD should still outperform though, with the respective central bank policy rates likely to be moving in NZ's favour over the coming 12 months. This will leave the market happy to stay short the AUD/NZD cross, although expect to see more support ahead of the 1.2000 level."
Mr. Cavenagh adds: "AUD/USD has found support despite the weaker CPI print and softer China data momentum. A break above 1.0300 paves the way for a move to 1.0360 but above 1.0400 is likely to be difficult to achieve. NZD/USD should still outperform though, with the respective central bank policy rates likely to be moving in NZ's favour over the coming 12 months. This will leave the market happy to stay short the AUD/NZD cross, although expect to see more support ahead of the 1.2000 level."