8 Apr 2014
AUD/USD upside limited - Societe Generale
FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale, believes the upside in AUD/USD would be limited.
Key Quotes
"A big winner of the super-low vol enviornment and oif the correction to US rates, is the AUD. Soft business confidence data have done nothing to stop the bounce."
"AUD/USD fell faster than, say, relative rates suggested between November and January, and the reverse has now been true since the start of March. I don't think this AUD rally can go very much further, though we stick with long AUD/NZD for now. And a 1y/1y rate differential betwene Australia and the US of 2.4% looks wide within the context of relative economic trends."
Key Quotes
"A big winner of the super-low vol enviornment and oif the correction to US rates, is the AUD. Soft business confidence data have done nothing to stop the bounce."
"AUD/USD fell faster than, say, relative rates suggested between November and January, and the reverse has now been true since the start of March. I don't think this AUD rally can go very much further, though we stick with long AUD/NZD for now. And a 1y/1y rate differential betwene Australia and the US of 2.4% looks wide within the context of relative economic trends."