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6 Jun 2014
Resilient Aussie - SocGen
FXStreet (Bali) - Sebastien Galy, FX Strategist at Societe Generale, notes a curious break in the relationship between rate differentials and the price action in the AUD/USD.
Key Quotes
"There has been a curious break in the relationship between rate differentials and the AUD/USD exchange rate since early February."
"Australian versus US rate differentials measured according to either 2-year or 10-year swap rates have broadly meandered lower since February, but the AUD/USD exchange rate rallied from 0.88 to 0.93 currently."
"The Aussie gains in the past few months have thus occurred despite weakening rates support."
Key Quotes
"There has been a curious break in the relationship between rate differentials and the AUD/USD exchange rate since early February."
"Australian versus US rate differentials measured according to either 2-year or 10-year swap rates have broadly meandered lower since February, but the AUD/USD exchange rate rallied from 0.88 to 0.93 currently."
"The Aussie gains in the past few months have thus occurred despite weakening rates support."