FXstreet.com (San Francisco) - After peaking to 1.0600 in the Asian session (highest since March 20), the AUD/USD has been trading back to trade below 1.0575 on the back of the RBA holding rates this morning. Currently the pair is trading at 1.0570.
The UBS Bank is caution about "adding to fresh longs in risk currencies around current levels, but the comments by the RBA are broadly consistent with expectations in many such economies heading into Q3."
UBS' economists now expects "the RBA to hold the cash rate at 3.5% until 2013," comments Geoffrey Yu, FX Strategist at UBS. "In an environment where the G5 central banks are maintaining a trend of increasing accommodation and zero rates, yield flows will likely continue, not to mention AAA demand adding to the interest."
UBS' AUDUSD targets are 1.000 for e month and 0.9700 for 3 months.
The UBS Bank is caution about "adding to fresh longs in risk currencies around current levels, but the comments by the RBA are broadly consistent with expectations in many such economies heading into Q3."
UBS' economists now expects "the RBA to hold the cash rate at 3.5% until 2013," comments Geoffrey Yu, FX Strategist at UBS. "In an environment where the G5 central banks are maintaining a trend of increasing accommodation and zero rates, yield flows will likely continue, not to mention AAA demand adding to the interest."
UBS' AUDUSD targets are 1.000 for e month and 0.9700 for 3 months.
