The analytic team of UBS is sure that the Australian Dollar may fall under the pressure of another external factor, apart from the eurozone debt crisis and China’s economic slowdown. The new threat comes from the Federal Reserve, i.e. its reluctance to start another round of quantitative easing. Therefore, the US Dollar won’t feel pressure, thus threatening the strengthening of the Australian Dollar.
The UBS analysts assume that the major threat comes from the growing US bond yield. However, the Aussi will manage to withstand the strengthening of its US counterpart in all the other market sectors.
And finally, they expect AUDUSD to reach parity within 3 months.
According to the Department of Masterforex-V Trading System , AUD has consolidated its position against USD. Once the price breaks the MF sloping channel and pivot 1.0510 will complete the current upswing. The closest levels of resistance are 1.0638, 1.0688, 1.0751.
