15 Jan 2014
Flash: AUD/USD towards multi year lows?
FXstreet.com (Guatemala) - Strategists at Brown Brothers Harriman explained that the impression is that the strength of the retail sales stripped of autos, building materials and gasoline showed an unexpected resilience of the US consumer that does not mesh with the weakness in employment figures.
Key Quotes:
“The other thing to be said about the US consumption is that it is apparently not being fuelled by credit cards. The greenback was already firm against the dollar-bloc yesterday and those gains have been extended”.
“The World Bank's downgrade of its GDP forecasts for China makes for convenient excuse to do what the market had begun doing and that is to sell into the Australian dollar's 5-week high set Monday in front of the resistance we identified near $0.9100. It reports jobs data tomorrow. A disappointing report could see a move toward the multi-year lows set in mid-December near $0.8820”.
Key Quotes:
“The other thing to be said about the US consumption is that it is apparently not being fuelled by credit cards. The greenback was already firm against the dollar-bloc yesterday and those gains have been extended”.
“The World Bank's downgrade of its GDP forecasts for China makes for convenient excuse to do what the market had begun doing and that is to sell into the Australian dollar's 5-week high set Monday in front of the resistance we identified near $0.9100. It reports jobs data tomorrow. A disappointing report could see a move toward the multi-year lows set in mid-December near $0.8820”.