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19 May 2015
AUD/USD is weak as RBA minutes detail desire for policy flexibility – Scotiabank
FXStreet (Barcelona) - Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank, notes that RBA’s stance for further action and ECB member Coeure’s speech were the prime factors behind AUD/USD’s weakness today.
Key Quotes
“AUD is weak, down 0.3% and underperforming its commodity peers ahead of the NA session on the back of both domestic and global central bank policy developments. AUD was an early underperformer in response to the RBA meeting minutes release, where policymakers appeared to favor retaining the ‘scope’ for action.”
“Further AUD weakness was subsequently observed in response to ECB Coeure’s speech highlighting the potential need for a more aggressive stance in light of a global bias toward easing.”
“AUD’s break back below 0.8000 is likely to prove psychologically meaningful, as we look to potential support at the 21 day MA 0.7920 followed by 0.7850.”
Key Quotes
“AUD is weak, down 0.3% and underperforming its commodity peers ahead of the NA session on the back of both domestic and global central bank policy developments. AUD was an early underperformer in response to the RBA meeting minutes release, where policymakers appeared to favor retaining the ‘scope’ for action.”
“Further AUD weakness was subsequently observed in response to ECB Coeure’s speech highlighting the potential need for a more aggressive stance in light of a global bias toward easing.”
“AUD’s break back below 0.8000 is likely to prove psychologically meaningful, as we look to potential support at the 21 day MA 0.7920 followed by 0.7850.”