Goldies have just upped their 2014 GDP forecast by 70bps to 2.7%. They cite favourable first quarter weather as the driver of strong exports.
Not only that they’ve raised their 12 month forecast for AUD/USD to 0.8600 from 0.8000. They have 3mth at 0.9000 from 0.8500 and 6mth at 0.8800 from 0.8200
We’re a long long way from the market screaming 0.8500 and worse last year.
I warned about potential for another slide down from 0.9450 and we’ve come up 3 pips short of a 100 pips loss.
AUD/USD daily chart 25 06 2014
The next band of decent technical support comes in at 0.9325/30 by way of the 55 dma and broken Oct 2013 resistance line.
