NAB revise AUD lower

NAB have revised their AUD forecasts lower.

They anticipate a rapid reversal of August moves “if, as we currently expect, Fed QE3 tapering commences next month”.




NAB also note:

• An RBA easing bias persists
• A softer USD and a rise in AUD ‘fair value’ as US rates ease back,
• Volatility indicators decline and metals prices lift off their recent floor
• Somewhat stronger China data is helping
• Green shoots of Eurozone recovery and a UK economy currently ‘on fire’ have driven our EUR and GBP forecasts higher
• Say they remain short AUD/USD from 0.9210, stop at 0.9350 , have lowered target to 0.8600 from 0.88