AUD/USD: HSBC recommends selling of the pair following RBA disappointment

HSBC believes it is a good time to sell the AUD/USD on the forex at this time.

"The AUD and NZD have recently gained much more ground than what the rates suggest. In other words, it appeared that the forex anticipated a hawkish tone from the RBA, which the rate markets were not expecting. The fact that the RBA did not validate this hawkish bias at its meeting this week, suggests that the AUD should now correct downward.

In addition, the RBA continued to alert investors to the negative consequences of an AUD that is too high.

While the tone of the RBA does not suggest a short-term rate hike, there is no reason to buy the AUD.

The fact that the AUD/USD has fallen on the forex despite strong data in Australia is a clear sign for us that the rally is running out of steam."