4 Mar 2014
Flash: AUD downside could follow Chinese meltdown - Danske Bank
FXStreet (Barcelona) - Lars Christensen, Chief Analyst at Danske Bank notes that this morning the Reserve Bank of Australia (RBA) kept its cash target rate unchanged at 2.50% as expected.
Key Quotes
“The accompanying statement reiterated that rates will likely remain stable but the RBA seemingly wished to remind markets that AUD should not recover too strongly before action will be action as Stevens and co spelled out that AUD “remains high by historical standards”.”
“We still see downside potential in Aussie as the Chinese slowdown is likely to continue into Q2 and stress the need for a rebalancing of the Australian economy.”
Key Quotes
“The accompanying statement reiterated that rates will likely remain stable but the RBA seemingly wished to remind markets that AUD should not recover too strongly before action will be action as Stevens and co spelled out that AUD “remains high by historical standards”.”
“We still see downside potential in Aussie as the Chinese slowdown is likely to continue into Q2 and stress the need for a rebalancing of the Australian economy.”