Back
5 Jun 2013
Flash: USD edges up on majors - OCBC Bank
FXstreet.com (Barcelona) - Emmanuel Ng of OCBC Bank comments that, aided by tapering comments from the Fed’s George, the greenback edged marginally higher against the majors with the AUD and the NZD leading the way lower and the antipodeans also under performing across the board.
He sees that the major currencies essentially had little to chew on ahead of the ECB on Thursday and the US labor market on Friday, although the RBA meeting (unchanged at 2.75%) statement kept the AUD on a slippery slope. He adds that in its rather terse statement, the RBA indicated that inflation outlook afforded further scope for easing if required and we think this may continue to fuel market expectations for another rate cut in the coming months. As such, he recommends that investors look to the AUD to continue to under perform if widespread dollar strength reemerges. For today, he adds, “Elsewhere, apart from the slew of global services PMIs (note the HSBC services PMI for China also due this morning), expect investors to remain attuned to US data releases, with the Fed’s Beige Book also due today.”
He sees that the major currencies essentially had little to chew on ahead of the ECB on Thursday and the US labor market on Friday, although the RBA meeting (unchanged at 2.75%) statement kept the AUD on a slippery slope. He adds that in its rather terse statement, the RBA indicated that inflation outlook afforded further scope for easing if required and we think this may continue to fuel market expectations for another rate cut in the coming months. As such, he recommends that investors look to the AUD to continue to under perform if widespread dollar strength reemerges. For today, he adds, “Elsewhere, apart from the slew of global services PMIs (note the HSBC services PMI for China also due this morning), expect investors to remain attuned to US data releases, with the Fed’s Beige Book also due today.”