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5 Mar 2014
Flash: AUD/USD boosted by data - BTMU
FXStreet (Barcelona) - Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ, observed the better performance of the AUD/USD post-GDP data in Oz.
Key Quotes
"So the belief that the RBA strategy is working will certainly reinforce the view that it will continue for now – hence, we should expect any spikes in AUD/USD well past the 0.9000 level to be met with clear vocal opposition by the RBA in order to ensure that net exports continues to play a role. That certainly helps explain in part the muted response of AUD/USD to the positive real GDP report."
"The other data from Australia was also positive today with the AiG services performance index jumping from 49.3 to 55.2 in February, the highest level since January 2012".
"Of course China growth will also be key for the RBA strategy to be successful. Today, Premier Le Keqiang announced the major targets for 2014 – real GDP of 7.5%, down from actual growth of 7.7% in 2013; an inflation target of 3.5% versus an actual rate of 2.6% in 2013; and to launch a war on China’s smog, which was described as a “red light” from nature on China’s growth model."
Key Quotes
"So the belief that the RBA strategy is working will certainly reinforce the view that it will continue for now – hence, we should expect any spikes in AUD/USD well past the 0.9000 level to be met with clear vocal opposition by the RBA in order to ensure that net exports continues to play a role. That certainly helps explain in part the muted response of AUD/USD to the positive real GDP report."
"The other data from Australia was also positive today with the AiG services performance index jumping from 49.3 to 55.2 in February, the highest level since January 2012".
"Of course China growth will also be key for the RBA strategy to be successful. Today, Premier Le Keqiang announced the major targets for 2014 – real GDP of 7.5%, down from actual growth of 7.7% in 2013; an inflation target of 3.5% versus an actual rate of 2.6% in 2013; and to launch a war on China’s smog, which was described as a “red light” from nature on China’s growth model."