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5 Mar 2014
Flash: Risk AUD rises above 0.91 near term - RBS
FXStreet (Bali) - Following the RBA statement yesterday, the focus is on the Governor parliamentary testimony on Friday.
Key Quotes
"The RBA market is probably hoping for the RBA Governor to further jawbone the AUD lower at his parliamentary testimony on Friday. However, the RBA statement said only that the AUD was historically high, and not "uncomfortably high" as was the case in Nov/Dec. The Governor will be cautious not to over deliver on currency rhetoric he is not prepared to back up by cutting rates or intervening; neither of which is likely."
"The risk is high that the AUD rises above .91 in the near term to squeeze shorts."
Key Quotes
"The RBA market is probably hoping for the RBA Governor to further jawbone the AUD lower at his parliamentary testimony on Friday. However, the RBA statement said only that the AUD was historically high, and not "uncomfortably high" as was the case in Nov/Dec. The Governor will be cautious not to over deliver on currency rhetoric he is not prepared to back up by cutting rates or intervening; neither of which is likely."
"The risk is high that the AUD rises above .91 in the near term to squeeze shorts."