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3 Dec 2014
AUD outlook vs GBP – Westpac
FXStreet (Barcelona) - Sean Callow of Westpac, sees the GBP/AUD pair trading in the 1.80-1.89 range into early 2015, and anticipates it to test the top of the range if iron ore prices recover.
Key Quotes
“AUD has struggled against GBP recently in the face of sliding commodity prices and China’s deceleration. However, it would take fresh unexpected negatives to break AUD/GBP 0.53, GBP/AUD 1.89/1.90. The UK story has also lost some appeal in recent months, with a BoE hike looking more distant and the UK running a record current account deficit.”
“We look for the pair to trade a broad AUD/GBP 0.5300-0.5550 / GBP/AUD 1.80-1.89 range into early 2015. If we see a recovery in iron ore prices in line with our baseline economic forecast, AUD should test the stronger end of this band during Q1 2015.”
Key Quotes
“AUD has struggled against GBP recently in the face of sliding commodity prices and China’s deceleration. However, it would take fresh unexpected negatives to break AUD/GBP 0.53, GBP/AUD 1.89/1.90. The UK story has also lost some appeal in recent months, with a BoE hike looking more distant and the UK running a record current account deficit.”
“We look for the pair to trade a broad AUD/GBP 0.5300-0.5550 / GBP/AUD 1.80-1.89 range into early 2015. If we see a recovery in iron ore prices in line with our baseline economic forecast, AUD should test the stronger end of this band during Q1 2015.”