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12 Jul 2013
Flash: AUD/USD break of 0.9000 paves the way lower - UBS
FXstreet.com (Córdoba) - On Friday, AUD/USD dropped to a new three year low, just below 0.9000 with no important news out, leading to the slide.
"In our view this shows that the recent rebound after Bernanke's statements was not the start of a stronger rebound", says the UBS team. "Historically high levels of AUD bond holdings by foreigners will keep AUD disposal high in any rebound".
In UBS' view, 0.9000 will be a psychologically important support. "Once this is broken, it paves the way for our three months forecast of 0.85", they say.
"In our view this shows that the recent rebound after Bernanke's statements was not the start of a stronger rebound", says the UBS team. "Historically high levels of AUD bond holdings by foreigners will keep AUD disposal high in any rebound".
In UBS' view, 0.9000 will be a psychologically important support. "Once this is broken, it paves the way for our three months forecast of 0.85", they say.