19 Nov 2013
Flash: AUD/USD rallies on China Optimism – TDS
FXstreet.com (London) - A research team at TD Securities explained that the RBA minutes continued to note that the AUD ‘remained uncomfortably high’ and left the door open for further rate cuts if conditions deteriorate.
Key Quotes:
“That was not a new message and we don’t think it will come to that however (TD forecasts flat policy rate until the next hike in Nov 2014)”.
“The bigger influence for the currency overnight came from the news that China is making further strides toward more flexible exchange rate (via more open investment rules and less intervention)—a move that could open further investment in the region”.
“The AUD is near the top of the G10 performance ranks this morning, although in a broader sense this development doesn’t change our overall bearish view on the currency in the months ahead”.
Key Quotes:
“That was not a new message and we don’t think it will come to that however (TD forecasts flat policy rate until the next hike in Nov 2014)”.
“The bigger influence for the currency overnight came from the news that China is making further strides toward more flexible exchange rate (via more open investment rules and less intervention)—a move that could open further investment in the region”.
“The AUD is near the top of the G10 performance ranks this morning, although in a broader sense this development doesn’t change our overall bearish view on the currency in the months ahead”.