FXstreet.com (Barcelona) - In the week ahead, RBA Governor Stevens speaks and the Australian Q2 CPI is due. UBS Economics anticipated that if Australia's core inflation rate falls near the bottom of the central bank's 2-3% target range i.e. rises less than 0.7%q/q, then the RBA will resume its easing cycle.
For now, "with commodity currency central banks largely on the sidelines, the euro is set to keep underperforming the commodity currency bloc as reserve managers keep diversifying out of their euros" says Mansoor Mohi-uddin, Head of Foreign Exchange at UBS Macro Research.
However, UBS suggests investors "not to chase commodity currencies higher against the US dollar at current levels, as the Australian, NZ and Canadian dollars are already at high historic levels against the greenback and renewed risk aversion will push these currencies back down against the US dollar."
For now, "with commodity currency central banks largely on the sidelines, the euro is set to keep underperforming the commodity currency bloc as reserve managers keep diversifying out of their euros" says Mansoor Mohi-uddin, Head of Foreign Exchange at UBS Macro Research.
However, UBS suggests investors "not to chase commodity currencies higher against the US dollar at current levels, as the Australian, NZ and Canadian dollars are already at high historic levels against the greenback and renewed risk aversion will push these currencies back down against the US dollar."
