Forex Flash: AUD/SGD risk tilted to upside – Westpac (Barcelona) - According to Markets Strategist Sean Callow at Westpac, “The AUD/SGD risks are tilted to the upside in
the next few weeks
as AUD outperforms amid broad USD
weakness. SGD is also likely to be
hampered by
sluggish domestic
growth, feeding
expectations for
looser monetary
policy in April.”

“The 1.31 level is
an obvious target, but
1.32 is probably just
out of reach, as in the
previous upswing, in
August 2012. Moreover, the AUD/SGD has
ignored daily moving
averages lately.” Callow adds.

However, the 100
week moving average
(1.2972) is drawing
some attention. The
next obvious chart
points are round numbers 1.30 and
1.31 then the Aug 2012 high at 1.3193.
“There is no reason to expect a return to anywhere close to the long term average of 1.17 given ongoing demand for Australian government bonds and FDI plus commodity prices which are still high in historical terms.” he predicts.