FXstreet.com (Barcelona) - Despite risk sentiment is fading throughout American hours, AUDUSD and NZDUSD still have to take note of it, with USD-traders-on-hold ahead of risk events like NFP on Friday, "possibly keeping the USD pairs in limbo for the moment, far more than they would be otherwise" comments John J Hardy, Head of FX Strategy at Saxo Bank.
Mr Hardy adds: "If we modeled AUDUSD vs. risk appetite/rate spreads and certain commodities, I think we would come up with an entirely different price for the Aussie. But let’s see what happens if either 1.0400 or 1.0250 is taken out again and/or see which way things are headed post election. I still suspect there is a substantial reality check that must take place Down Under."
Mr Hardy adds: "If we modeled AUDUSD vs. risk appetite/rate spreads and certain commodities, I think we would come up with an entirely different price for the Aussie. But let’s see what happens if either 1.0400 or 1.0250 is taken out again and/or see which way things are headed post election. I still suspect there is a substantial reality check that must take place Down Under."
