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12 Mar 2014
Flash: AUD remains vulnerable - RBS
FXStreet (Bali) - Greg Gibbs, FX Strategist at RBS, shares his view on the market, outlining the ongoing worries over China, Ukraine, while also pointing at the AUD vulnerability.
Key Quotes
"FX markets are trading on fears over China apparent in the recent fall in copper, but with limited new news."
"Developments in the Ukraine also generate downside risks for European markets and the EUR, although Eurozone periphery markets remain strong led by Portugal."
"USD/JPY is trading back to its lows made at the open on Monday. AUD is trading back towards supports in the low .89s. There is a lot of noise and little substance ahead of a key employment report in Australia and a raft of Chinese data on Thursday."
"These may be opportunities over the medium term to buy USD/JPY. AUD is more vulnerable to restructuring in China and recent moves are consistent with this trend. As such, it remains vulnerable, even though a good deal of negative risk is already priced in."
Key Quotes
"FX markets are trading on fears over China apparent in the recent fall in copper, but with limited new news."
"Developments in the Ukraine also generate downside risks for European markets and the EUR, although Eurozone periphery markets remain strong led by Portugal."
"USD/JPY is trading back to its lows made at the open on Monday. AUD is trading back towards supports in the low .89s. There is a lot of noise and little substance ahead of a key employment report in Australia and a raft of Chinese data on Thursday."
"These may be opportunities over the medium term to buy USD/JPY. AUD is more vulnerable to restructuring in China and recent moves are consistent with this trend. As such, it remains vulnerable, even though a good deal of negative risk is already priced in."