19 Nov 2013
Flash: AUD lifted despite non-event minutes? - BBH
FXstreet.com (London) - The currency analyst team at BBH said the Australian dollar has been lifted by more talk of liberalization in China and minutes from the central bank's recent meeting.
Key Quotes:
“The latter underscores the official comfort with the current monetary setting, thus signalling no near-term change in policy. The Australian dollar extended its recent gains, spiking toward $0.9450 before pulling back into the upper end of yesterday's range”.
“The gains took it above the downtrend line drawn off the late October high, but the intra-day move seems exhausted. A close above the trendline, which comes in near $0.9375, would be helpful from a technical perspective”.
“The 20-day moving average comes near $0.9460 and held Aussie's upticks in check earlier this month. We also note that demand was robust for the sale of Australia's longest maturity paper. The 20-year bond was yielding 4.86%. While the maturity may be too long for central bank reserve managers, the bond likely attracted some foreign interest. Settlement is November 26”.
Key Quotes:
“The latter underscores the official comfort with the current monetary setting, thus signalling no near-term change in policy. The Australian dollar extended its recent gains, spiking toward $0.9450 before pulling back into the upper end of yesterday's range”.
“The gains took it above the downtrend line drawn off the late October high, but the intra-day move seems exhausted. A close above the trendline, which comes in near $0.9375, would be helpful from a technical perspective”.
“The 20-day moving average comes near $0.9460 and held Aussie's upticks in check earlier this month. We also note that demand was robust for the sale of Australia's longest maturity paper. The 20-year bond was yielding 4.86%. While the maturity may be too long for central bank reserve managers, the bond likely attracted some foreign interest. Settlement is November 26”.