Flash: AUD shorts tense post RBA statement - BMO Capital Markets

FXStreet (Barcelona) - Stephen Gallo, European Head of Currency Strategy at BMO Capital Markets feels that broadly speaking, ‘EM’ generally remained on the sideline today, with participants looking towards more immediate event-risk.

Key Quotes

“The AUD remained firm, and we suspect the ‘patient’ AUD shorts are feeling a little more tense following yesterday’s RBA statement, especially with AUD/USD re-testing yesterday’s highs.”

“We think the risk of aggressive AUD short covering will probably increase sharply between 0.900-0.920 versus the USD. EUR/AUD and GBP/AUD both felt soft again during the London morning.”