11 Apr 2014
Is the Aussie losing momentum? - RBS
FXStreet (Bali) - Greg Gibbs, FX Strategist at RBS, shares his take on the FX market, noting that the market may be overlooking key risks.
Key Quotes
"With a strong run back towards carry trades and a weaker USD over recent weeks generating its own momentum, the market has perhaps ignored key risks that continue to brew."
"One is Ukraine another is Chinese growth and property market slowdown. Improving US labor market indicators (strong jobless claims) also work against the Fed easier for longer view."
"Threats of gas supply cuts by Russia and weak Chinese imports may remind the market of these risks."
"The AUD has given back gains made post the employment data yesterday, perhaps a sign that its recent run higher may have lost momentum at a time when key risks could return to weaken sentiment."
Key Quotes
"With a strong run back towards carry trades and a weaker USD over recent weeks generating its own momentum, the market has perhaps ignored key risks that continue to brew."
"One is Ukraine another is Chinese growth and property market slowdown. Improving US labor market indicators (strong jobless claims) also work against the Fed easier for longer view."
"Threats of gas supply cuts by Russia and weak Chinese imports may remind the market of these risks."
"The AUD has given back gains made post the employment data yesterday, perhaps a sign that its recent run higher may have lost momentum at a time when key risks could return to weaken sentiment."