25 Feb 2015
Commodity FX action - Westpac
FXStreet (Guatemala) - Sean Callow, analyst at Westpac Banking Corporation, gave a break down of the commodity currency action overnight.
Key Quotes:
"AUD/USD was volatile on the initial Yellen headlines but then rallied from under 0.7760 to 0.7825 and a high of 0.7837 late NY. Support at 0.7795/0.7800 should hold on the day and indeed the upbeat global risk mood should help AUD/USD push towards the upper end of a band currently capped at 0.7876."
"The Bank of Canada's view that the shock Jan rate cut buys time to assess the economy might also add to the trimming of risks for the RBA decision on Tue, now reduced to 40% chance of a cut. USD/CAD slumped from 1.2615 to under 1.2500 on the Poloz speech. The BoC also meets next week."
"NZD/USD rose from 0.7440 to 0.7485. AUD/NZD benefited from the NZD’s underperformance on the fall in NZ household inflation expectations, rising from 1.0415 to 1.0476 – a two-week high."
Key Quotes:
"AUD/USD was volatile on the initial Yellen headlines but then rallied from under 0.7760 to 0.7825 and a high of 0.7837 late NY. Support at 0.7795/0.7800 should hold on the day and indeed the upbeat global risk mood should help AUD/USD push towards the upper end of a band currently capped at 0.7876."
"The Bank of Canada's view that the shock Jan rate cut buys time to assess the economy might also add to the trimming of risks for the RBA decision on Tue, now reduced to 40% chance of a cut. USD/CAD slumped from 1.2615 to under 1.2500 on the Poloz speech. The BoC also meets next week."
"NZD/USD rose from 0.7440 to 0.7485. AUD/NZD benefited from the NZD’s underperformance on the fall in NZ household inflation expectations, rising from 1.0415 to 1.0476 – a two-week high."