USD Trading Outlook (01-12-2014)
AUD/USD drifted up off the bottom after holding another run at Wednesday’s .8480 lows, but remains a favorite target of the bears as commodity weakness spreads beyond oil. Metals and mining sectors got hammered, suggesting that behind the OPEC headlines there is a broader demand problem certain to hang around the neck of materials exporting countries. That easing moves by the PBOC, ECB and BOJ have had no impact on commodity prices has to be of some concern to the RBA, which may get its wish for a lower currency, but undoubtedly with some unpleasant and unintended consequences.
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