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Currency Analyst since 2010

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.”

Watch the economic calendar for AUD

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