AUD/USD: bearish forecasts
Analysts at Credit Suisse note that the strong rejection of AUD/USD down from resistance at $0.8900 was a bearish development. The bank has a sell limit at $0.8880 with target at $0.8700 and stop loss at $0.8935. Morgan Stanley also has a sell limit, but higher, at $0.8940 with target at $0.8400 and stop loss at $0.9040.
Here’s a comment on AUD's fundamentals from Morgan Stanley:
“While the FOMC Minutes provided some support for the AUD, we believe that the fundamental story is still weak. There was a sharp decline in the labor market data and last month’s large upside surprise was revised lower. We believe that the use of macro-prudential measures in Australia will keep the RBA more dovish than the market is currently anticipating. Both this and any weakness seen from Chinese data this week would be a negative for the AUD.”