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

By FXStreet 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.”
For more information, read our latest forex news. …read more

Source:: FX Street