9 Dec 2014
AUD still weak – SG
FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Research at Societe Generale, remains bearish on the AUD/USD pair, anticipating it to head towards 0.80 levels.
Key Quotes
“The biggest loser overnight was the Australian dollar, with AUD/JPY down 1 ½%. We remain very bearish of AUD/USD, looking for the fall to extend through AUD/USD 0.80. The driver of the most recent move is a savage shift in relative interest rates.”
“US 2-year rates have risen by about 10bp in recent days, largely on the back of the payroll data. Speculation about a change of language in next week's FOMC statement will support short-dated US yields (flattening the curve further). By contrast, Australian 2-year rates have fallen by 30bp in under 4 weeks as the markets shift their rate expectations.”
“The NBA business confidence report released this morning showed a drop to +1 from +5 and prompted NAB to forecast two rate cuts next year, in March and August.”
Key Quotes
“The biggest loser overnight was the Australian dollar, with AUD/JPY down 1 ½%. We remain very bearish of AUD/USD, looking for the fall to extend through AUD/USD 0.80. The driver of the most recent move is a savage shift in relative interest rates.”
“US 2-year rates have risen by about 10bp in recent days, largely on the back of the payroll data. Speculation about a change of language in next week's FOMC statement will support short-dated US yields (flattening the curve further). By contrast, Australian 2-year rates have fallen by 30bp in under 4 weeks as the markets shift their rate expectations.”
“The NBA business confidence report released this morning showed a drop to +1 from +5 and prompted NAB to forecast two rate cuts next year, in March and August.”