According to Barclays, the Aussie has enough positive factors in order to stay strong. The high yield of Australian bonds together with Australia’s AAA rating makes the Australian Dollar attractive for investors.
However, Barclays analysts say that the economic slowdown in Asia raises more concerns. In particular, China’s economic slowdown increases the probability of a downtrend in the market of AUDUSD.
Despite preserving the monthly forecast for AUDUSD at 1.01, Barclays experts say that the currency pair is unlikely to drop any deeper and expect it to recover up to 1.04 by the end of Q2 2013.
According to , the Australian Dollar has suspended its strengthening against the US Dollar. The experts report that AUDUSD is forming a big-scale upswing represented by wave А/В of Daily.
A further rally will probably encounter resistance around 1.0507, 1.0544, 1.0543. The current bullish move will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 1.0322 (as shown below).
