6 Feb 2014
Flash: AUD rebounds, supported by improvement in risk sentiment - BTMU
FXStreet (Córdoba) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ notes that the Australian dollar has rebounded, supported by an improvement in risk sentiment.
Key Quotes
"Elsewhere, the Australian dollar has continued to rebound as well overnight benefitting from the gradual improvement in investor risk sentiment and supportive domestic economic data releases. It was reported overnight in Australia that the value of retail sales growth continued to remain robust in December expanding by 0.5% having expanding by an annualized rate of almost 7.0% in the second half of 2013."
"The report supports the RBA’s decision earlier this week to drop its easing bias with evidence building that the economy is gaining upward momentum. Australian short rates will now be more responsive to any further evidence of strengthening economic momentum in Australia providing greater support for the Australian dollar ahead. A further squeeze of elevated speculative short positions would also support a relief Aussie rally."
Key Quotes
"Elsewhere, the Australian dollar has continued to rebound as well overnight benefitting from the gradual improvement in investor risk sentiment and supportive domestic economic data releases. It was reported overnight in Australia that the value of retail sales growth continued to remain robust in December expanding by 0.5% having expanding by an annualized rate of almost 7.0% in the second half of 2013."
"The report supports the RBA’s decision earlier this week to drop its easing bias with evidence building that the economy is gaining upward momentum. Australian short rates will now be more responsive to any further evidence of strengthening economic momentum in Australia providing greater support for the Australian dollar ahead. A further squeeze of elevated speculative short positions would also support a relief Aussie rally."