28 Jun 2013
Flash: The Asia Week Ahead – BofA Merrill Lynch
FXstreet.com (London) - Tomos Rhys Edwards said for the Asia week ahead, the focus is on AUD.
He is seeing greater granularity in IMF COFER data and that will tell us a little more about central bank reserve weightings in the currency. AUD, he feels, certainly seems to have suffered as a result of its reserve currency popularity of late, with EM FX reserves being deployed in defence of exchange rates. He does not expect the RBA meeting to alter rates, although the easing bias will be retained, and we see this delivering a modest (0.3%) short-term currency bounce. He does see the new Prime Minster having major market implications, given the proximity of elections and our expectations of a change of administration.
He is seeing greater granularity in IMF COFER data and that will tell us a little more about central bank reserve weightings in the currency. AUD, he feels, certainly seems to have suffered as a result of its reserve currency popularity of late, with EM FX reserves being deployed in defence of exchange rates. He does not expect the RBA meeting to alter rates, although the easing bias will be retained, and we see this delivering a modest (0.3%) short-term currency bounce. He does see the new Prime Minster having major market implications, given the proximity of elections and our expectations of a change of administration.