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28 Nov 2013
Flash: AUD weakest by some margin – Societe Generale
FXstreet.com (London) - Kit Juckes, head of currency strategy at Societe Generale explained that the AUD has been the weakest of G10’s by some distance.
Key Quotes:
“The Australian dollar has been by some distance the weakest of the G10 currencies since mid-May”.
“RBA verbal interventions, weaker Chinese data, Fed taper-talk - there are plenty of candidates to explain the move, but for a casual correlation, I find that AUD/USD looks as though it has been following US Treasury yields around - the higher they go, the weaker the AUD is”.
“If I dig a little bit weaker, I find that 10-year rates matter more than short term ones, and the ratio of rates AUD/US matters more than the spread”.
Key Quotes:
“The Australian dollar has been by some distance the weakest of the G10 currencies since mid-May”.
“RBA verbal interventions, weaker Chinese data, Fed taper-talk - there are plenty of candidates to explain the move, but for a casual correlation, I find that AUD/USD looks as though it has been following US Treasury yields around - the higher they go, the weaker the AUD is”.
“If I dig a little bit weaker, I find that 10-year rates matter more than short term ones, and the ratio of rates AUD/US matters more than the spread”.