Flash: AUD has most negative news priced in - RBS

FXstreet.com (Bali) - While the AUD may remain vulnerable, Greg Gibbs, FX Strategist at RBS, notes that most of the bad news are already priced in.

Key Quotes

"AUD may remain vulnerable to taper expectations this week, dire budget predictions, a higher risk premium attached to China growth and weaker JPY trend."

"AUD has already significantly under-performed all other currencies since around mid-October with the additional help of RBA jaw-boning it lower."

"AUD has built in a good deal for recent developments. The RBA minutes today note some positives in the non-mining sector and with house price rises accelerating, further rate cuts are unlikely."