FXstreet.com (Córdoba) - According to Marc Chandler, Global Head of Currency Strategy at BBH: "The trend line the Aussie has been climbing since June 1 also broke down in the second half of last week, with two consecutive closes below it, warning that some of the late longs were in week hands."
"The gains since June 1 saw the Australian dollar recoup half of what it lost since putting in a double top in February near $1.0855. In the upside correction is over, the Aussie should push below $0.9980 in the days ahead, which would open the door for a move to $0.9900 and then possibly $0.9830, which may offer more formidable support", he forecasts. "Of note, the Australian dollar appears attractive to reserve managers, including the Bundesbank, seeking diversification, and asset managers, looking for a liquid and easily accessible (unrestricted) was to gain Asian exposure," he adds.
"The gains since June 1 saw the Australian dollar recoup half of what it lost since putting in a double top in February near $1.0855. In the upside correction is over, the Aussie should push below $0.9980 in the days ahead, which would open the door for a move to $0.9900 and then possibly $0.9830, which may offer more formidable support", he forecasts. "Of note, the Australian dollar appears attractive to reserve managers, including the Bundesbank, seeking diversification, and asset managers, looking for a liquid and easily accessible (unrestricted) was to gain Asian exposure," he adds.
