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AUD/USD remains a buy-on-dips opportunity for the week ahead – Westpac

FXStreet (Barcelona) - According to Westpac, with markets paring back on pricing rate cuts by the RBA and US data expected to disappoint again, AUD/USD might find buyers on dips.

Key Quotes

“Governor Stevens told his audience in NY that the question of another rate cut “has to be on the table”. He also argued that further AUD decline is “very likely”, albeit “over time”. Yet after sliding on his speech, AUD/USD bounced hard on the barely above consensus inflation data.”

“Having spent much of this year pricing in more than 50bp worth of further RBA cash rate cuts, markets are now toying with <40bp.”

“The empty local calendar in the week ahead will only add to nervousness over the May decision but should at least help AUD/USD find buyers on dips, especially in a week where US data could disappoint again.”

Strong GBP good for UK inflation – Investec

Yesterday’s hawkish BoE MPC minutes and the view of members regarding the positive impact on inflation due to sterling’s appreciation were GBP supportive, comments Jonathan Pryor, Head of FX dealing at Investec.
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USD/JPY testing highs above 120

The US dollar resumed its upward trajectory versus the yen, pushing USD/JPY near fresh session highs, as traders preferred to hold the reserve currency ahead of a set of macro data releases from the US later in the session.
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