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6 Aug 2013
Flash: AUD/USD - RBA helping the global risk bounce? - Societe Generale
Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that the RBA cut rates to 2.5% as expected.
Key Quotes
“The Australian dollar, as the RBA’s statement as interpreted as a shift in policy towards ‘neutral’ now that rates are at a record low.”
““Sell the rumour, buy the fact” is a common enough market reaction, but I have two takeaways. Firstly, reluctance to keep on selling the AUD reflects an improved mood for risk assets (and currencies) in general. Secondly, although the AUD can bounce further, that’s a chance to re-set shorts at higher levels. These are still the simplest way to position for the continued Chinese economic slowdown.”
Key Quotes
“The Australian dollar, as the RBA’s statement as interpreted as a shift in policy towards ‘neutral’ now that rates are at a record low.”
““Sell the rumour, buy the fact” is a common enough market reaction, but I have two takeaways. Firstly, reluctance to keep on selling the AUD reflects an improved mood for risk assets (and currencies) in general. Secondly, although the AUD can bounce further, that’s a chance to re-set shorts at higher levels. These are still the simplest way to position for the continued Chinese economic slowdown.”