Flash: AUD/USD exposed to 0.80/0.85 fall - RBS

FXstreet.com (Barcelona) - The trend under-performance of the AUD/USDexchange rate is likely to persist, notes Greg Gibbs, FX Strategist at RBS, although admitting that "the recent momentum in Chinese market indicators; including commodity prices and equities have firmed in recent weeks, which may lead to a more stable AUD above 90 for the time being."

Gibbs reminds us of the old correlation between the AUD/USD and overall US equities as no longer valid since April, with the AUD now "trying to reconnect with weak mining and steel sector equities that have sharply under-performed the broader market since 2011" Gibbs said. In view of the RBS Strategist, "AUD perhaps has further to go to reflect the under-performance of these sectors since mid-2009, thus a fall to 80 to 85 is possible."

Jul 15, 2013

Flash: EUR/USD, 1.2930-80 key to technical outlook - BBH

The $1.2930-80 area may be the key to the euro's technical outlook, notes Marc Chandler, Global Head of Currency Strategy at BBH. The Strategist think that the key supportive mean now is 1.2930-80, with a break lower "suggesting that the upside correction was sharp but brief and that the downtrend is set to resume." On the upside, Chandler says that "a move back up above $1.3100 suggests another upleg is likely, could extend toward $1.3400."

Session Recap: USD unchanged with Tokyo closed; China GDP in line at 7.5%

Flat session for most of the major pairs while Tokyo markets have remained closed over holiday, ahead of later on US retail sales data, with Aussie as the only one pair moving a bit against USD.