AUD/USD: M&A flows possibly supportive today - Westpac

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 25, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - Sean Callow, analyst at Westpac noted that in a Tue evening speech in Sydney, RBA governor Stevens reiterated that there is room to cut interest rates “if that actually helps.” AUD outperformed, despite iron ore falling 1.9% to $43.89/tonne – a record low since daily prices began publication in 2008.

    Key Quotes:

    "Other commodities were more positive, including copper +2.6% and gold up slightly. AUD/USD dipped from 0.7220 to 0.7189 on the headlines from Turkey but rose in the NY afternoon to 0.7250, with help from a recovery in US equities. This short-covering rally could extend to 0.7280 on the day but it is hard to see it being sustained multi-day/week.

    We have noted that net M&A inflows seem to be supportive for AUD at the moment but this is - as always – hard to nail down. Today’s focus is the NSW government’s 99 year lease on electricity “poles and wires”, which Premier Baird announced was won by a consortium including investors from Canada and Abu Dhabi. Only a portion of the AUD10.3bn headline number is likely to involve buying AUD."
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