Currency Update: The #AUD rose to a two-week high after the# RBA kept the cash rate unchanged and issued a neutral statement on the chance of further cuts. This morning the #AUD was trading at USD 0.9050, slightly up from 0.9034 yesterday. In overnight trade, the currency peaked at 0.9073, its highest level since 20th August. The #AUD has been the strongest performing currency over the past 24 hours. The #RBA yesterday kept the cash rate at 2.50% yesterday as expected, and with no explicit hints of an easing policy bias in the Media Release, the market took it as another step towards a ‘neutral’ policy stance. The view seems to be the #RBA is still on an easing bias, even if there were no explicit hints yesterday. Inflation is expected to remain consistent with the target and growth will be below trend, which keeps the door open to another easing, and most expect another cut before year-end. The US dollar was reasonably quiet last night. Better than expected US manufacturing data overnight continued to strengthen the case for Fed tapering later this month, but jitters remained on western military intervention into #Syria. President Barack Obama is urging Congress to take a “prompt” vote authorising military action, which appears to have won support from top two Republicans John Boehner and Eric Cantor, suggesting some sort of intervention is on the horizon. US equities opened stronger overnight, but grinded lower through the session to finish only slightly higher. Today’s Forecast Range: USD 0.9000 – 0.9100
Posted on: Wed, 04 Sep 2013 00:33:48 +0000
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