FXstreet.com (Barcelona) – “So far so good for the AUD and NZD vs the US dollar”, that is the expression being used by Mansoor Mohi-uddin, Head of FX at UBS Macro Research.
However, the UBS strategist does not advocate buying the Aussie above parity vs the US dollar or the Kiwi around 80 cents, saying that “at current levels neither commodity currency reflects the risks from the global economy.”
UBS sees the RBA cutting rates again on risks of further flare ups in global financial markets. “Australia’s central bank is concerned about renewed turbulence from Europe, the recent slowdown in the US and the outlook for China. We too believe the Eurozone debt crisis will result in further bouts of global risk aversion over the next few months” adds Mansoor.
