21 Aug 2013
Flash: AUD's price action very disappointing amid increase in net flow - Westpac
FXstreet.com (Barcelona) - Since the start of the consolidative moves in the AUD/USD, net demand for the currency according to Westpac client flows has recovered sharply, however, "one might have expected a better performance by AUD than has been the case" notes Richard Franulovich, Westpac FX Strategist.
Key Quotes
"Real Money, Sovereign and Hedge Fund/CTA clients have been net buyers of AUD for 9 of the past 12 trading sessions."
"As disappointing as the AUD's price action has been vis-a-vis the turnaround in our client flows, it may yet stabilise if this week's FOMC minutes lack concrete guidance on tapering as soon as the next FOMC meeting and if this week's August China PMI builds on the recent improved activity readings for China."
"However, whatever upside for AUD may exist it is surely constrained. The bottom line is that the AUD's broad price action in the wake of a solid turnaround in net flow has been very disappointing."
Key Quotes
"Real Money, Sovereign and Hedge Fund/CTA clients have been net buyers of AUD for 9 of the past 12 trading sessions."
"As disappointing as the AUD's price action has been vis-a-vis the turnaround in our client flows, it may yet stabilise if this week's FOMC minutes lack concrete guidance on tapering as soon as the next FOMC meeting and if this week's August China PMI builds on the recent improved activity readings for China."
"However, whatever upside for AUD may exist it is surely constrained. The bottom line is that the AUD's broad price action in the wake of a solid turnaround in net flow has been very disappointing."