AUD: Carry on in a low volatility environment amidst quiet week - ING
|It’s a very quiet week in the Australian local calendar, though we do have a couple of RBA officials (Bullock and Debelle) to note, according to analysts at ING.
Key Quotes
“Governor Lowe's comment that we should be prepared for higher interest rates seems to have gone under the radar in a noisy Fed week; further talk along these lines would instil a steepening bias in the front-end of the Australian rate curve and keep AUD crosses supported.”
“The post-Fed shakeout means that AUD positioning is likely to be much cleaner, lending itself to a potential rebuild of long positions in a low-interest rate volatility and carry-friendly environment. Tail risks to this view remain heightened geopolitical tensions or a bond market sell-off driven by global central banks; the latter seems unlikely as it's becoming increasingly clear that embedded in asset prices is now the assumption that central banks will take the least market disruptive path when it comes to policy normalisation.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.