29 Oct 2013
Flash: Antipodeans talked down – BBH
FXstreet.com (London) - Research teams at BBH said It’s not often that central bankers talk down their currencies, but we’re seeing quite a bit of it lately from the Antipodeans.
Key Quotes:
“Over the weekend, RBNZ Governor Wheeler was doing just that”.
“This time, it was RBA Governor Stevens’ turn. He said AUD isn’t supported by the current cost and productivity structure in the economy, adding that the terms of trade for Australia are more likely to fall than rise. He added that “The foreign exchange market is perhaps another area in which investors should take care. It seems quite likely that at some point in the future the Australian dollar will be materially lower than it is today.””
“We couldn’t agree more. Some near-term support is likely to be seen in the .9400 area. Over the past five days, NZD and AUD are by far the worst performing currencies of the majors against USD, down 3% and 2%, respectively”.
Key Quotes:
“Over the weekend, RBNZ Governor Wheeler was doing just that”.
“This time, it was RBA Governor Stevens’ turn. He said AUD isn’t supported by the current cost and productivity structure in the economy, adding that the terms of trade for Australia are more likely to fall than rise. He added that “The foreign exchange market is perhaps another area in which investors should take care. It seems quite likely that at some point in the future the Australian dollar will be materially lower than it is today.””
“We couldn’t agree more. Some near-term support is likely to be seen in the .9400 area. Over the past five days, NZD and AUD are by far the worst performing currencies of the majors against USD, down 3% and 2%, respectively”.