Back
3 Oct 2013
Flash: AUD underperformance vs NZD, CAD, USD about to resume - JPMorgan
FXstreet.com (Barcelona) - AUD will soon turn the laggard once again vs NZD, CAD, USD, according to John Normand and
Meera Chandan, FX Strategists at JP Morgan Securities.
Key Quotes
"If policymakers in China and Australia are serious about rebalancing their economies – China by containing house prices, credit growth and fixed asset investment, and Australia by spurring non-mining growth – then the Chinese economy will need to slow again and the RBA will need to cut policy rates further."
"Both developments should renew AUD's underperformance on the crosses, particularly if those developments coincide with a move higher in US rates in early 2014. For the next several weeks, however, China could still feel the lift from the July mini-stimulus, and the RBA/Fed divergence will not materialise so soon."
Meera Chandan, FX Strategists at JP Morgan Securities.
Key Quotes
"If policymakers in China and Australia are serious about rebalancing their economies – China by containing house prices, credit growth and fixed asset investment, and Australia by spurring non-mining growth – then the Chinese economy will need to slow again and the RBA will need to cut policy rates further."
"Both developments should renew AUD's underperformance on the crosses, particularly if those developments coincide with a move higher in US rates in early 2014. For the next several weeks, however, China could still feel the lift from the July mini-stimulus, and the RBA/Fed divergence will not materialise so soon."