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11 Mar 2013
Forex Flash: Remain bearish CAD and AUD - BBH
Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman is bearish both CAD and AUD ahead.
He begins by noting that stronger than expected US jobs data failed to offer much support to the Loonie and the greenback held support and was pegged around 1.0200-20 before returning to session highs. He writes, “A convincing move above CAD1.0350 would signal a resumption of the move that we expect can carry the US buck to CAD1.05.”
Looking to AUD/USD, he notes that the pair recovered after falling to five month lows at the start of last week. He writes, “It stalled near $1.03, which now represents the upper end of the range. Support now is seen in the $1.0180-$1.0210 range. Although the RBA signaled not urgency to cuts further, we do expect another cut later in Q2.”
He begins by noting that stronger than expected US jobs data failed to offer much support to the Loonie and the greenback held support and was pegged around 1.0200-20 before returning to session highs. He writes, “A convincing move above CAD1.0350 would signal a resumption of the move that we expect can carry the US buck to CAD1.05.”
Looking to AUD/USD, he notes that the pair recovered after falling to five month lows at the start of last week. He writes, “It stalled near $1.03, which now represents the upper end of the range. Support now is seen in the $1.0180-$1.0210 range. Although the RBA signaled not urgency to cuts further, we do expect another cut later in Q2.”