Dual Currency Investment (DCI) AUD USD With increasing signs that the economic recovery has gained traction, the U.S. now stands as the first major economy able to discard the crutch of monetary stimulus. We are confident about the prospects for the U.S. dollar not only throughout this year but beyond, and the consensus is coming into line with our view that the U.S. Fed likely to slow down its QE size starting in 4Q2013 before completely stop the program in mid-2014 and begin rate hike in 2015, when the recovery become sustainable. RATIONALE: Chairman Ben Bernanke has told Congress that the Fed is looking to scale back its expansionary monetary policy as the U.S. economy starts to pick up the slack. Confidence among U.S. consumers in the economy and their financial prospects reached its highest level in more than five years, supported by rising property and stock values. Nevertheless, the markets are still responding to economic uncertainty, including evidence of a weaker-than-expected Gross Domestic Product during the first quarter. Together, the reports still pointed to an economy that has help up reasonably well despite government constraints. The overall trend towards economic recovery and the resulting reduction in Fed asset purchases should support the greenback as the year progresses. Indications of flagging growth in China have pushed the Australian dollar to a 19-month low and could continue to affect the commodity-backed currencies in future. This has seen the AUD/USD declining over the last week, after the improvement of economic sentiment in the U.S. economy. We currently see support for the pair at around 0.9800 level. BY THE PERFORMANCE OF THE UNDERLYING ASSET/REFERENCE, AND THE RECOVERY OF YOUR PRINCIPAL INVESTMENT MAY BE JEOPARDISED IF YOU MAKE AN EARLY REDEMPTION.
Suggested DCI Strike Levels MYR Pairing Strike Levels Currency Trading Range Strike Levels Tenor (Weeks) AUD/MYR 2.9200 3.0000 NZD/MYR 2.4400 2.5000 USD/MYR 3.0450 3.1000 GBP/MYR 4.6500 4.7200 EUR/MYR 3.9650 4.0350 AUD Base 3.1000 (indicative 5.00%) 1 NZD Base 2.4920 (indicative 5.00%) 1 MYR Base 2.4290 (indicative 5.00%) 1 GBP Base 4.7290 (indicative 5.00%) 1 EUR Base 4.0510 (indicative 5.00%) 1 BY THE PERFORMANCE OF THE UNDERLYING ASSET/REFERENCE, AND THE RECOVERY OF YOUR PRINCIPAL INVESTMENT MAY BE JEOPARDISED IF YOU MAKE AN EARLY REDEMPTION.
USD Pairing Strike Level Currency Trading Range Strike Levels Tenor (Weeks) EUR/USD 1.2800-1.3200 GBP/USD 1.4900 1.5300 AUD/USD 0.9400 0.9800 EUR Base 1.3100 (indicative 4.00%) 2 GBP Base 1.5300 (indicative 4.78%) 2 AUD Base 0.9800 (indicative 4.80%) 2 NZD/USD 0.7800 0.8250 NZD Base 0.8200 (indicative 5.90%) 2 USD Base 0.7800 (indicative 6.00%) 1 USD/CAD 1.0200 1.0450 USD Base 1.0400 (indicative 4.00%) 2 CAD Base 1.0250 (indicative 2.80%) 2
SGD Pairing Strike Levels Currency Trading Range Strike Levels Tenor (Weeks) EUR/SGD 1.6200 1.6500 GBP/SGD 1.9000 1.9400 AUD/SGD 1.2000 1.2400 NZD/SGD 0.9900 1.0300 CAD/SGD 1.2100 1.2300 USD/SGD 1.2550 1.2800 EUR Base 1.6500 (indicative 4.90%) 2 SGD Base Hold - GBP Base 1.9250 (indicative 4.80%) 2 SGD Base Hold - AUD Base 1.2300 (indicative 4.00%) 2 SGD Base Hold - NZD Base 1.0200 (indicative 5.00%) 2 SGD Base 0.9950 (indicative 6.00%) 1 CAD Base 1.2230 (indicative 3.00%) 2 SGD Base 1.2150 (indicative 4.00%) 2 SGD Base 1.2580 (indicative 4.00%) 2
Other Strike Level Currency Trading Range Strike Levels Tenor (Week) AUD/CAD 0.9900 1.0200 AUD/NZD 1.1900 1.2200 AUD Base 1.0100 (indicative 4.05%) 2 CAD Base Hold - AUD Base 1.2200 (indicative 5.00%) 2 NZD Base Hold -
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