Fundamental view: AUD has rallied against greenback in the past week. The Aussie is continuing to benefit from the outperformance from building optimism over the global growth outlook which is helping to improve Australia’s terms of trade. The RBA noted earlier this week that the trade-weighted Aussie would normally be expected to be around 5% higher based on higher commodity prices, [...]
Fundamental view: The US dollar has rallied quite a bit against the Japanese yen during the trading week but it has given back about half of the gains. Dollar strength has been largely a function of rising US interest rates, the yield on the 10-year Treasury has gained about 40 basis points this year to 1.336% [...]
Fundamental view: The British pound has rallied significantly to take out the 1.40 level. Reaching this level is a mix of British of upbeat UK corona virus statistics and a twist lower in the dollar amid yield-moving stimulus speculation. The British variant is the reason or excuse of several countries struggling to cope with COVID-19. [...]
The Reserve Bank of New Zealand (RBNZ) is about to keep the Official Cash Rate (OCR) on hold at its first monetary policy decision of 2021 next week, as the economy stages a swift turnaround from the coronavirus crisis. All of the 12 economists concluded that the Reserve Bank of New Zealand (RBNZ) will be [...]
