26 Mar 2014
Risk of RBA jawboning AUD removed?
FXStreet (Bali) - After some expectations of a possible AUD jawboning, RBA's Governor Stevens disappointed shorts in the Aussie, leading to further specs running to the exits.
The fact that we are in a more defined uptrend near term, coupled with the omission to talk about AUD levels in specific terms, was perceived by market participants as removing the risk, thus clearing the path for a resumption of the uptrend.
Moreover, Steven did reiterate the ‘period of stability’ for interest rates, while also sounding more confident on the mining transition into new sectors of the economy, resulting on expectations of stronger growth later this year.
It is important to highlight though, that not all the risks to trade the AUD upside potential have been removed, as RBA Governor Stevens will participate in a panel discussion at 6 GMT, in which questions about the AUD may be asked.
Earlier this week, a new study published by Deloitte identified five areas with most potential to underpin Australia's growth story for the next 20 years.
The fact that we are in a more defined uptrend near term, coupled with the omission to talk about AUD levels in specific terms, was perceived by market participants as removing the risk, thus clearing the path for a resumption of the uptrend.
Moreover, Steven did reiterate the ‘period of stability’ for interest rates, while also sounding more confident on the mining transition into new sectors of the economy, resulting on expectations of stronger growth later this year.
It is important to highlight though, that not all the risks to trade the AUD upside potential have been removed, as RBA Governor Stevens will participate in a panel discussion at 6 GMT, in which questions about the AUD may be asked.
Earlier this week, a new study published by Deloitte identified five areas with most potential to underpin Australia's growth story for the next 20 years.