4 Jul 2013
Flash: USD reverses intraday strength – OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank notes that despite supportive ADP and Initial Claims numbers, USD reversed intraday strength and eased against majors by late NY.
Elsewhere, Ng notes that the heightened political tension in Egypt saw investors seek refuge in the Yen. Additionally, he notes that global sentiment had already been darkened after the due of Chinese PMIs indicated a flat to weaker environment ahead.
Looking to Australia, Ng comments that undecidedly bearish comments from the RBA’s Stevens during Asian hours struck another blow to the AUD/USD, with the pair sinking below 0.9100 to test briefly below 0.9050. He writes, “Specifically, Stevens expressed surprise at the aussie’s resilience, adding that freely floating exchange rates “do eventually adjust”.” On monetary policy, Ng notes that Stevens did not depart from previous rhetoric and left the door open for further rate cuts if necessary.
Elsewhere, Ng notes that the heightened political tension in Egypt saw investors seek refuge in the Yen. Additionally, he notes that global sentiment had already been darkened after the due of Chinese PMIs indicated a flat to weaker environment ahead.
Looking to Australia, Ng comments that undecidedly bearish comments from the RBA’s Stevens during Asian hours struck another blow to the AUD/USD, with the pair sinking below 0.9100 to test briefly below 0.9050. He writes, “Specifically, Stevens expressed surprise at the aussie’s resilience, adding that freely floating exchange rates “do eventually adjust”.” On monetary policy, Ng notes that Stevens did not depart from previous rhetoric and left the door open for further rate cuts if necessary.