23 Apr 2014
AUD taking centre stage today - BTMU
FXStreet (Barcelona) - Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ, observes the AUD as one of the most active markets today.
Key Quotes
"The foreign exchange market remains locked in narrow trading ranges with little to alter current monetary policy expectations. The exception is the Australian dollar which is close to 1.0% lower after weaker than expected inflation data."
"The overall annual CPI rate and the trimmed mean rate were 0.3 point lower than expected at 2.9% and 2.6% respectively in the first quarter. The 1.0% drop in AUD/USD underlines how sensitive the market has become to the potential for the RBA to begin to shift toward a bias to tighten its policy stance."
"We think we are nowhere close to that but if the overall annual CPI rate had moved over the 3.0% upper-end of the target band, as expected, then the AUD/USD may well have had another leg higher. Indeed, it would appear from today’s price action that this is what the market was positioned for."
Key Quotes
"The foreign exchange market remains locked in narrow trading ranges with little to alter current monetary policy expectations. The exception is the Australian dollar which is close to 1.0% lower after weaker than expected inflation data."
"The overall annual CPI rate and the trimmed mean rate were 0.3 point lower than expected at 2.9% and 2.6% respectively in the first quarter. The 1.0% drop in AUD/USD underlines how sensitive the market has become to the potential for the RBA to begin to shift toward a bias to tighten its policy stance."
"We think we are nowhere close to that but if the overall annual CPI rate had moved over the 3.0% upper-end of the target band, as expected, then the AUD/USD may well have had another leg higher. Indeed, it would appear from today’s price action that this is what the market was positioned for."