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1 Jul 2014
AUD benefitted from the RBA - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, noted the solid performance of the AUD post-RBA.
Key Quotes
"The Australian dollar has been one of the main beneficiaries within the G10 currencies whose recent strength appears increasingly to be diverging from weakening fundamentals. The Australian dollar has strengthened further overnight after the RBA maintained an unchanged monetary policy stance and refrained from indicating greater concern over Australian dollar strength."
"The RBA’s policy statement was largely unchanged form their last meeting in early June. The RBA reiterated that “the exchange rate remains high by historical standards, particularly given declines in key commodity prices, and hence is offering less assistance than it might in achieving balanced growth in the economy”."
"The Australian dollar has also derived some support overnight from the release of manufacturing PMI surveys from China for June. The official manufacturing PMI survey revealed that business confidence in China increased by 0.2 point to 51.0 in June and the HSBC manufacturing PMI survey increased by 1.3 point 50.7, both survey readings were at their highest levels this year signalling that economic growth in China has likely strengthened modestly in Q2 after the slowdown in Q1."
Key Quotes
"The Australian dollar has been one of the main beneficiaries within the G10 currencies whose recent strength appears increasingly to be diverging from weakening fundamentals. The Australian dollar has strengthened further overnight after the RBA maintained an unchanged monetary policy stance and refrained from indicating greater concern over Australian dollar strength."
"The RBA’s policy statement was largely unchanged form their last meeting in early June. The RBA reiterated that “the exchange rate remains high by historical standards, particularly given declines in key commodity prices, and hence is offering less assistance than it might in achieving balanced growth in the economy”."
"The Australian dollar has also derived some support overnight from the release of manufacturing PMI surveys from China for June. The official manufacturing PMI survey revealed that business confidence in China increased by 0.2 point to 51.0 in June and the HSBC manufacturing PMI survey increased by 1.3 point 50.7, both survey readings were at their highest levels this year signalling that economic growth in China has likely strengthened modestly in Q2 after the slowdown in Q1."