Greg Gibbs, Founder, Analyst, & PM Amplifying Global FX Capital Pty Ltd, an Australian financial services company, explained that it is time to step back and take a breath in the FX market.
"It lacks conviction, is displaying inconsistent correlations and being whipped around by competing news and views on uncertain events. The market can no longer rely on the US government to act as a source of stability for global markets. The rebound in Asian currencies is counterintuitive as US pressure mounts on Chinese trade and economic relations. But it may reflect position adjustment, a pull-back in US yields, and US policy uncertainty. The AUD continues to be supported by strong commodity prices, but domestic, Chinese and global financial stability risks, exacerbated by rising US rates, accounts for its weakness this year; we continue to see downside risks dominating."
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