4 Dec 2013
Flash: AUD under pressure - BTMU
FXstreet.com (London) - The US dollar certainly has momentum on the back of better US data, meanwhile Derek Halpenny at The Bank of Tokyo-Mitsubishi UFJ noted the AUD performance.
Key Quotes:
“The dollar certainly has momentum on the back of better US data and AUD/USD is sharply lower due to a disappointing GDP report”.
“Real GDP expanded by 0.6% in Q3 but net exports contributed 0.7ppt to overall growth, implying a contraction in the domestic economy”.
“Mining also accounted for half of overall growth. While we understand the reaction, on a valuation basis, AUD/USD is looking stretched on the downside and if dollar momentum fades, AUD/USD would be a good performer”.
Key Quotes:
“The dollar certainly has momentum on the back of better US data and AUD/USD is sharply lower due to a disappointing GDP report”.
“Real GDP expanded by 0.6% in Q3 but net exports contributed 0.7ppt to overall growth, implying a contraction in the domestic economy”.
“Mining also accounted for half of overall growth. While we understand the reaction, on a valuation basis, AUD/USD is looking stretched on the downside and if dollar momentum fades, AUD/USD would be a good performer”.