Back
7 Jul 2014
AUD/USD: RBA to step up rhetoric towards AUD above 0.95 - RBS
FXStreet (Bali) - According to Greg Gibbs, FX Strategist at RBS, the Aussie may begin to feel capped around 0.95, a level seen as too high for the RBA.
Key Quotes
"The RBA might be more inclined to cut rates and/or use intervention to limit gains in the AUD above .95; although much would depend on the performance of the economy and inflation."
"It is unclear from Steven’s comments how reactive the RBA may be to gains in the currency from current levels, this uncertainty itself is helpful for the RBA’s cause, by putting market in two-minds and leaving the RBA’s options open."
"But certainly we should see a further ratcheting up of the RBA threats above .95, in my view. As such, the currency may begin to feel capped around that level."
Key Quotes
"The RBA might be more inclined to cut rates and/or use intervention to limit gains in the AUD above .95; although much would depend on the performance of the economy and inflation."
"It is unclear from Steven’s comments how reactive the RBA may be to gains in the currency from current levels, this uncertainty itself is helpful for the RBA’s cause, by putting market in two-minds and leaving the RBA’s options open."
"But certainly we should see a further ratcheting up of the RBA threats above .95, in my view. As such, the currency may begin to feel capped around that level."