4 Sep 2013
Flash: Syria may act as modest weight on AUD - Westpac
FXstreet.com (Barcelona) - As chances of a limited US military intervention in Syria increase, Westpac FX Strategist Sean Callow views the event this month "as a modest weight on AUD, on the assumption that it is limited in scope as promised."
Key Quotes
"Congress is not due to formally debate action until next week, which presumably delays any action until mid-month. This brings the potential conflict even closer to key market events such as the 18 Sep FOMC decision and 22 Sep German elections, after which Congress needs to agree to fund the government and also raise the debt ceiling."
"With such a busy event calendar already in September, Syria is unlikely to be the dominant driver in most markets. However, there is plenty of uncertainty over how it plays out, which at the very least has been keeping a premium in oil prices."
"Brent crude has been has been swinging back and forth around $115/bbl in recent sessions, far enough above the May-Jun $100-105 prices to pose a fresh headwind to the global economy."
Key Quotes
"Congress is not due to formally debate action until next week, which presumably delays any action until mid-month. This brings the potential conflict even closer to key market events such as the 18 Sep FOMC decision and 22 Sep German elections, after which Congress needs to agree to fund the government and also raise the debt ceiling."
"With such a busy event calendar already in September, Syria is unlikely to be the dominant driver in most markets. However, there is plenty of uncertainty over how it plays out, which at the very least has been keeping a premium in oil prices."
"Brent crude has been has been swinging back and forth around $115/bbl in recent sessions, far enough above the May-Jun $100-105 prices to pose a fresh headwind to the global economy."