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28 Aug 2013
Flash: AUD/USD at risk ahead of Capex – UBS
FXstreet.com (New York) - Research Analyst Gareth Berry at UBS analyzes the near-term outlook of the AUD/USD with projections for longer-term timeframes.
Key quotes
“The RBA hopes that non-mining sectors of the economy will step up and make a greater contribution as the mining investment boom recedes. It’s probably too soon to see firm evidence of such a transition in Thursday’s edition of the survey.”
However, “if capex spending intentions by other sectors of the economy were to rise significantly, then that could provide a counterbalance to any mining-induced currency weakness.”
“We maintain our 1-month and 3-month AUD/USD forecasts at 0.8800.
Key quotes
“The RBA hopes that non-mining sectors of the economy will step up and make a greater contribution as the mining investment boom recedes. It’s probably too soon to see firm evidence of such a transition in Thursday’s edition of the survey.”
However, “if capex spending intentions by other sectors of the economy were to rise significantly, then that could provide a counterbalance to any mining-induced currency weakness.”
“We maintain our 1-month and 3-month AUD/USD forecasts at 0.8800.