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4 Jul 2014
RBA still watching the AUD - RBS
FXStreet (Barcelona) - Greg Gibbs, FX Trading Strategist at RBS, sees the AUD/USD at 0.9500 as a crucial level for the RBA.
Key Quotes
"We interpret the speech from RBA Governor Glenn Stevens this week as evidence that the RBA is much more reactive to the exchange rate above .95. It may lean towards either an easing bias or threaten intervention if it were to rise above this level, especially if its key commodity prices remain weaker."
"There is clearly evidence of a global reach for yield that has pushed the AUD up recently (along with other currencies such as the KRW). However, we see the USD strengthening on a firming rates outlook in US. This may be sufficient to help cap AUD at .95 and we continue to forecast .85 over 12 months."
Key Quotes
"We interpret the speech from RBA Governor Glenn Stevens this week as evidence that the RBA is much more reactive to the exchange rate above .95. It may lean towards either an easing bias or threaten intervention if it were to rise above this level, especially if its key commodity prices remain weaker."
"There is clearly evidence of a global reach for yield that has pushed the AUD up recently (along with other currencies such as the KRW). However, we see the USD strengthening on a firming rates outlook in US. This may be sufficient to help cap AUD at .95 and we continue to forecast .85 over 12 months."