30 Jul 2013
Flash: Tracing the genesis of the AUD/USD collapse – UBS
FXstreet.com (New York) - Some observers blame the RBA's decision to cut on May 7 for the ten big-figure decline in the AUD/USD since then, notes Gareth Berry, a Research Analyst at UBS.
Key quotes
“Instead, the AUD/USD has been mostly a victim of a broad-based US dollar advance since then, reinforced by news out of China. Specifically from signs that Chinese policymakers are willing to tolerate slower growth, rising stresses in China's money market a gradual deterioration in Chinese economic data.”
“The lesson here is that these drivers will likely retain their dominance over AUD/USD whether or not the RBA chooses to cut next week.”
Key quotes
“Instead, the AUD/USD has been mostly a victim of a broad-based US dollar advance since then, reinforced by news out of China. Specifically from signs that Chinese policymakers are willing to tolerate slower growth, rising stresses in China's money market a gradual deterioration in Chinese economic data.”
“The lesson here is that these drivers will likely retain their dominance over AUD/USD whether or not the RBA chooses to cut next week.”