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28 Aug 2013
Flash: AUD/USD has risk of further downside – UBS
FXstreet.com (New York) - Risk of more downside ahead as tensions in the Middle East have hurt the AUD/USD over the past 24 hours, but it’s too soon to fade that move in our view. Australia’s quarterly capex survey is due on Thursday, notes Research Analyst Gareth Berry at UBS.
Key quotes
Indeed, “this has the potential to be a significant market mover and, as a precaution, we are braced for potentially bad news.”
“This survey can shed light on the future course of Australia’s mining investment boom. There was a time when most FX investors paid little heed to it, but now that the boom is peaking, the survey has attracted far more attention and the currency has shown greater sensitivity to capex surprises.”
Key quotes
Indeed, “this has the potential to be a significant market mover and, as a precaution, we are braced for potentially bad news.”
“This survey can shed light on the future course of Australia’s mining investment boom. There was a time when most FX investors paid little heed to it, but now that the boom is peaking, the survey has attracted far more attention and the currency has shown greater sensitivity to capex surprises.”