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27 Jan 2014
Flash: AUD guide to international fears - RBS
FXstreet.com (Bali) - According to Greg Gibbs, FX Strategist at RBS, it is likely that the market is going to spend much of this year in a more cautious frame of mind.
Key Quotes
"The impression one gets of emerging markets is that they are more vulnerable and jumpy this year. The performance of the AUD appears to reflect market wariness over financial conditions in China."
"Even though interest rates in China have fallen over recent weeks, suggesting less financial stress, the AUD may be a better guide to international fears over financial conditions. The CNH forwards have also weakened in the last week, moving back below the strong side of the official CNY trading band."
"Perhaps the latest fears will dissipate after Chinese New Year if no financial stress evolves after the repayment of the investment trust in apparent default on 31 January passes. However, it is likely that the market is going to spend much of this year in a more cautious frame of mind."
Key Quotes
"The impression one gets of emerging markets is that they are more vulnerable and jumpy this year. The performance of the AUD appears to reflect market wariness over financial conditions in China."
"Even though interest rates in China have fallen over recent weeks, suggesting less financial stress, the AUD may be a better guide to international fears over financial conditions. The CNH forwards have also weakened in the last week, moving back below the strong side of the official CNY trading band."
"Perhaps the latest fears will dissipate after Chinese New Year if no financial stress evolves after the repayment of the investment trust in apparent default on 31 January passes. However, it is likely that the market is going to spend much of this year in a more cautious frame of mind."