RBS: sell AUD/USD on highs
AUD/USD extends the upside, breaking above the 2013 trend resistance and 50% Fibo from Oct. 2013 - Jan. 2014 downside. Australian currency touched $0.9247 in the Asian trade - this is the highest level since Nov. 2013.
Currency strategists at RBS are bullish for AUD/USD in the near term and target the $0.9300/95 area. From a broader viewpoint, they recommend selling the Aussie on rallies.
"We expect the current period of currency strength to trigger a "dovish" shift in RBA rhetoric. We see upside risks for US rates and/or potential for financial stress in China to re-emerge. We see potential for further declines in iron ore and coal prices as the Chinese economy continues to slow."