22 Oct 2015
CBA attributes AUD pressure to PBoC advisor comments
FXStreet (Bali) - CBA attributed the recent downward pressure in the Aussie to comments from a PBoC policy advisor Bai Chongen.
According tot CBA, Chongen stated that China “shouldn’t stretch to maintain a 7% growth in the future” and that China was investing “too much” in infrastructure.
The bank notes: "The softer momentum in heavy industry in China, and the recalibration in growth drivers towards consumption, is occurring at a time commodity supply is rising."
CBA added the perception of weaker Chinese demand is a negative input for commodity prices, which supports the bank's bearish medium-term view on both the Aussie and Kiwi.
According tot CBA, Chongen stated that China “shouldn’t stretch to maintain a 7% growth in the future” and that China was investing “too much” in infrastructure.
The bank notes: "The softer momentum in heavy industry in China, and the recalibration in growth drivers towards consumption, is occurring at a time commodity supply is rising."
CBA added the perception of weaker Chinese demand is a negative input for commodity prices, which supports the bank's bearish medium-term view on both the Aussie and Kiwi.