Flash: Outlook for Asia EM and commodity currencies positive near term - RBS

FXstreet.com (Barcelona) - The outlook for emerging market in the Asian region as well as commodity currencies looks more constructive in the near term, notes Greg Gibbs, FX Strategist at RBS.

Key Quotes

"It appears China remains on a moderately strong growth path. India’s external balance has improved sharply in the last month.
Malaysia and the Philippines have shown stronger activity. New Zealand continues to grow strongly and Australian indicators have
also generally beaten expectations."

"With the Fed likely to remain on hold for longer, and its activity data perhaps heading into a softer patch in coming months as
economic confidence is sapped by the fiscal debate, we may see Asia EM and commodity currencies firm against a weaker USD.
The caveat of course is if the US goes into a deeper crisis, it could drag down global investor confidence."