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16 May 2014
AUD/USD potential downside ahead? - RBS
FXStreet (Barcelona) - Greg Gibbs, FX Trading Strategist at RBS, sees the likeliness of downside correction in the AUD/USD.
Key Quotes
"Downside risks for the AUD mount as iron ore fundamentals look weak with slowing activity in China meeting increased supply in Australia. Politics in Australia is becoming divisive again and may dampen consumer and business confidence."
"Yield-seeking behaviour has helped drive a wedge between the AUD and commodity prices, this may continue for the short term, in our view. But the time is drawing nearer when the market will need to contemplate higher rates in the US."
Key Quotes
"Downside risks for the AUD mount as iron ore fundamentals look weak with slowing activity in China meeting increased supply in Australia. Politics in Australia is becoming divisive again and may dampen consumer and business confidence."
"Yield-seeking behaviour has helped drive a wedge between the AUD and commodity prices, this may continue for the short term, in our view. But the time is drawing nearer when the market will need to contemplate higher rates in the US."