Forex News: Short-term AUD/USD model of fair value sitting at 0.9010 at the start of this week, with AUD/USD 7% more expensive and the most expensive since Nov. 9, 2007, when currency subsequently fell 5 cents, says John Kyriakopoulos, head of FX strategy at nabCapital. Falling metal prices and risk appetite pushing fair value estimates lower. But despite sharp fall in risk appetite, AUD/JPY has appreciated. This is largely why AUD/USD is trading so far above fair value. Japanese wage bonus season has triggered a step-up in Toushin launches, which supported AUD/JPY. If Toushin demand eases and if equity markets remain weak then AUD/JPY should weaken, taking AUD/USD with it and helping close the gap with the fair value estimate. Support at 0.9500, resistance 0.9600. Now 0.9545.
0 comments:
Post a Comment