Free Trial

Westpac suggest that the AUD is finding......>

AUSSIE
AUSSIE: Westpac suggest that the AUD is finding support from "the domestic
growth and interest rate outlook and perhaps inbound direct investment. It is
also worth noting that the pipeline of publicly announced merger and acquisition
inflow to Australia is close to 2-year highs. Any AUD demand from such deals
will not be derailed by e.g. Italian political wrangling.
- The bank goes onto note that the "AUD's domestic story is also broadly
positive - at least in relative terms, which is of course what matters for
currencies. The RBA has made clear that it expects the next move in the cash
rate to be up, so long as its forecasts are broadly accurate. They should be
pleased with Q1 GDP data on Wed. Today's capex survey showed a stronger than
expected 2.5%qtr rise in Q1 plant & equipment spending, causing our economics
team to raise its GDP forecast to 0.9%qtr, 2.8%yr. Even if there are some
downside surprises in the partial data Mon and Tue that weigh on the actual GDP
outcome, Australia should still report a faster quarterly growth pace in Q1 than
e.g. the US, UK, Eurozone and Japan. Global volatility may persist, but so too
could AUD outperformance on crosses."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.