Dovish RBA and rising Canberra-Beijing tensions to restrain AUD’s performance – Rabobank

“Compared to its peers, the RBA is extremely candid in its acknowledgment that QE plays a pivotal role in lowering the worth of the rate of exchange,” note Rabobank analysts.

Key quotes
“In a speech about monetary policy in the week, RBA Deputy Governor Debelle mentioned the rate of exchange on numerous occasions and stated that the aim of the Bank’s bond purchase program “is to place downward pressure on bond yields and therefore the rate of exchange to supply stimulus to the Australia economy”.”

“Much to the consternation of AUD bulls, despite record highs in various commodity prices, the worth of AUD/USD has remained consolidative in recent weeks, only spiking higher after the shockingly weak April US payrolls data undermined the greenback.”

“Although we see the potential for AUD/USD to drift higher to 0.79 on a 6 to 12-month view, the strength of the dovish forward guidance of the RBA including rising tensions between Canberra and Beijing is probably going to still restrain the performance of the AUD.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and will not in any way encounter as a recommendation to shop for or sell in these assets. you ought to do your own thorough research before making any investment decisions. FXStreet doesn’t in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also doesn’t guarantee that this information is of a timely nature. Investing in Open Markets involves an excellent deal of risk, including the loss of all or some of your investment, also as emotional distress. All risks, losses and costs related to investing, including total loss of principal, are your responsibility. The views and opinions expressed during this article are those of the authors and don’t necessarily reflect the official policy or position of FXStreet nor its advertisers.

admin

Read Previous

GBP/USD: Pound bulls have reasons to be optimistic on Super Thursday

Read Next

EUR/USD extends gains to two-month highs above 1.2150

Leave a Reply

Your email address will not be published. Required fields are marked *