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1 Nov 2013
Flash: AUD may base out here for another run up on stronger data - RBS
FXstreet.com (Athens) – Greg Gibbs Analyst on behalf of RBS mentions that AUD may base out here for another run up on stronger global and domestic data, improving its rate spread.
Key Quotes
“USD has gained on remaining hopes that a Fed taper is still on the table. But there is little new info and most US data is softer, so USD gains may soon run out of steam. We are seeing a rate cut in the Eurozone in November, but still think ultimately ECB will slip further behind the curve and EUR downside limited.”
“We see increasing evidence that Japan is achieving rising inflation pressure and this will ultimately cap JPY upside. Fears over China downturn on policy tightening may subside with stronger regional PMI data.”
Key Quotes
“USD has gained on remaining hopes that a Fed taper is still on the table. But there is little new info and most US data is softer, so USD gains may soon run out of steam. We are seeing a rate cut in the Eurozone in November, but still think ultimately ECB will slip further behind the curve and EUR downside limited.”
“We see increasing evidence that Japan is achieving rising inflation pressure and this will ultimately cap JPY upside. Fears over China downturn on policy tightening may subside with stronger regional PMI data.”