FXStreet — Sean Callow, market analyst at Westpac explained that AUD/USD on a weekly basis, recorded only a minus of 0.8 percent lower despite the sharp decline mid-week. The higher risk appetite in the financial markets and the capital flows into Australia’s most important Asian trading partner, mean that the downside risks for the AUD are limited.
The optimistic tone of the Reserve Bank of Australia does not reflect that the expectations of Interest rate cuts to record really travel.
The most recent course development is still in accordance with a resolution of net Long positions of leveraged financial investors. This must be accepted, what is likely to lead to a Test of 0,73.
Australia should lose its top credit rating (AAA), the Australian Dollar, however a large decline. However, he is likely to recover, if the credit rating Agency Standard & poor’s maintains the credit rating.
** FXStreet News Editorial, FXStreet**